Former UAW Official Charged In Fiat Chrysler Scandal

Former UAW official Nancy A. Johnson, 57, of Macomb was charged with violating the Labor Management Relations Act by accepting gifts and money from Fiat Chrysler during contract negotiations in 2015. An indictment unsealed Wednesday by U.S. Attorney Matthew Schneider alleges that between 2014 and 2016, when Johnson was second in command of the UAW Chrysler Department, she illegally accepted “tens of thousands of dollars worth of designer clothing, golf resort fees, limousine services, lavish meals, luxury accommodations, luggage, and first-class travel for herself and one of her associates.”

Johnson’s alleged acts were part of a conspiracy among senior UAW officials and the automaker to direct “a stream of concealed payments and things of value” from Fiat Chrysler to the union officials just months before 2015 collective bargaining negotiations began. In addition to the gifts and travel, the U.S. Attorney says Johnson, who was part of the UAW team negotiating with Fiat Chrysler, spent $1,160 for one pair of designer shoes, paid for with money from the carmaker. Johnson also allegedly spent $1,217 for “salon and spa services,” and $1,518 for graphite golf clubs and a “diva cart bag,” again with money from Fiat Chrysler.

“Today’s indictment marks the sixth defendant charged in a scheme where senior UAW officials betrayed the hard-working men and women of the union by accepting illegal payments from company executives,” said United States Attorney Schneider in a statement. “My office will continue to work tirelessly with our partners at the U.S. Department of Labor, IRS, and the FBI to expose and prosecute any union official or corporate executive involved in similar criminal conduct,” he added.

James Vanderberg, the FBI Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General called investigating accusations against labor officials a high priority for his office.

“An important mission of the Office of Inspector General is to investigate allegations relating to labor racketeering and prohibited payments between company officials and union officials governed by a collective bargaining agreement,” Vanderberg said in a statement. “We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to investigate these types of allegations.”

Jeffery E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI, lambasted Johnson for failing to represent union members. “As a former UAW official, Nancy Johnson chose personal greed over promoting individual leadership through her participation in a ‘pay to play’ scheme to enrich herself at the detriment of union members she represented,” Peterson said. “This indictment sends a clear message that the FBI, through collaboration with our law enforcement partners, will continue to aggressively investigate anyone who circumvents their legal responsibilities within the union movement at the expense of their members.”

If convicted, Johnson faces up to five years in prison and a fine of up to $250,000 for each of the five counts in the indictment.

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