FCA Considers Suing Ex Rochester Hills Executive Over UAW Scandal

ROCHESTER Hills, MI — Fiat Chrysler is considering suing former labor chief Al Iacobelli a day after he was indicted by the federal government for defrauding the company of about $2.2 million. The indictment charges Iacobelli and others acting in the interest of FCA with making over $1.2 million in prohibited payments to Monica Morgan and then-UAW Vice President General Holiefield and others. Iacobelli is a Rochester Hills resident.

Morgan, 54, of Harrison Township, was charged with conspiring with Iacobelli and others to violate the Labor Management Relations Act. Morgan is the wife of former UAW Vice President Holiefield, who died in March of 2015.

Also charged was Jerome Durden, 61, of Rochester, with conspiracy to defraud the United States by impairing, impeding, and obstructing the Internal Revenue Service. Durden was a Financial Analyst in the FCA Corporate Accounting Department who served as the Controller of the UAW-Chrysler National Training Center from 2008 through 2015.

"FCA US and the UAW were the victims of malfeasance by certain of their respective employees that held roles at the National Training Center (NTC), an independent legal entity,” the company said in a statement Wednesday. “These egregious acts were neither known to nor sanctioned by FCA US. Upon learning of possible malfeasance in June 2015, the Company investigated the matter and, as a result, Mr. Iacobelli and Mr. Durden were promptly separated from the Company upon FCA US obtaining credible evidence of wrongdoing.”

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In a separate statement, Fiat Chrysler CEO Sergio Marchionne said Thursday his company is considering litigation. He added that FCA has worked with the the UAW to implement governance, auditing and structural reforms to improve the accountability and transparency of the NTC.

“FCA US has cooperated fully with the U.S. Attorney’s office in its investigation of this matter,” Marchionne said. “We remain committed to ensuring that the Company and its employees act in a manner consistent with high standards of legal compliance, ethics, integrity and quality.”

Photo by Dan Istitene / Staff / Getty Images Sport / Getty Images