Last year, federal law enforcement agencies investigated whether members of the United Auto Workers union received some illegal financial kickbacks from purchasing promotional products for union events. At that time in April 2019, about 10 promotional distributors received subpoenas, and eight people were convicted in the corruption case.
Nearly a year and a half later, the latest news coming out of that story is that GM is suing a former company director as a means of recouping money lost during the original case.
Joe Ashton, former GM director, is a retired UAW vice president who pleaded guilty for his role in the union bribery and kickbacks scheme.
General Motors has filed a lawsuit against former director Joe Ashton to recoup money embezzled in the United Auto Workers corruption scandal. Ashton pleaded guilty for his role in the UAW bribery and kickback scandal last year, awaiting prison sentence.https://t.co/As921EdQRP
— Financial Crime Watch (@FinCrime_Watch) September 15, 2020
“His admissions demonstrate that he engaged in criminal conduct that harmed GM during his time on GM’s board, which constitutes a clear breach of fiduciary duty for which any director would be held accountable,” GM said in a statement last week, according to The Detroit News.
Ashton reportedly demanded $550,000 in financial gifts and bribes from promotional products vendors producing UAW-branded merchandise. The process of giving these vendors the contracts was rigged, too. A list of vendors that received the contracts showed that they produced more than $15.8 million in UAW-branded items, all of which were paid for by GM.
Ashton, one of the highest ranking UAW officials involved in the scandal, is currently awaiting prison sentence for his involvement.
