United Auto Workers Will Pay $1.5M to Settle Tax Issues
WASHINGTON/DETROIT (Reuters) – The U.S. Attorney’s Office in Detroit said Monday the United Auto Workers (UAW) union has agreed to independent oversight to resolve a five-year federal corruption investigation that ensnared two former UAW presidents.
U.S. Attorney Matthew Schneider said the UAW would pay $1.5 million to settle tax issues, make significant reforms, and be overseen by an independent monitor for six years. Schneider said the civil settlement caps the investigation into the union but said inquiries could continue against individuals.
“The union has had a problem with fraud, embezzlement, and corruption,” Schneider told a press conference. “There are a few bad apples and those people have been convicted.”
He added that UAW International President Rory Gamble, who was present, was not under investigation.
