Federal probe: UAW bosses ‘spent $1 million of union funds on dinners, golf, villas and cigars’

Former United Auto Workers President Gary Jones reportedly dropped $13,000 in union funds at an Arizona cigar shop in a single day, according to a federal complaint.

The complaint, filed in September against another union leader, mentions that an official purchased a dozen $268 boxes of Ashton Double Magnum cigars and a dozen boxes of Ashton Monarchs, costing about $275 each.

In return, the official, reported to be Jones, was sent a thank you note from the Arizona cigar shop.

Former United Auto Workers President Gary Jones (pictured) in a single day reportedly dropped $13,000 in union funds at an Arizona cigar shop

The complaint, filed in September against another union leader, mentions that an official believed to be  Jones bought a dozen $268 boxes of Ashton Double Magnum (pictured) cigars and a dozen boxes of Ashton Monarchs, costing about $275 each.

The complaint, filed in September against another union leader, mentions that an official believed to be  Jones bought a dozen $268 boxes of Ashton Double Magnum (pictured) cigars and a dozen boxes of Ashton Monarchs, costing about $275 each.  

The pricey purchases were part of $60,000 Jones and other UAW officials allegedly spent on cigars between 2014 and 2018, according to a federal complaint filed against Vance Pearson, a UAW regional who was arrested and charged in a federal government corruption investigation, the New York Times reports.

The probe, uncovering more than just the inappropriate purchase of cigars and cigar paraphernalia, has also alleged that roughly $1 million was in union funds was spent on golf outings, four-figure dinners and months-long villa stays in Palm Springs and elsewhere, the Times reports.

Plus the revelations come on top of an investigation into company and union officials’ misuse of millions of dollars that were earmarked for a Fiat Chrysler-UAW training center. 

The complaint against Pearson, filed in September, refers to several unnamed persons, including one who is referred to as ‘Official A’. 

Union officials identified the individual as Jones, whose home was one of several residences raided by the FBI and IRS in August.

A federal complaint filed against a regional UAW leader, refers to several unnamed persons, including one who is referred to as 'Official A'. Union officials identified the individual as Jones, whose home was one of several raided by the FBI and IRS in August (pictured)

A federal complaint filed against a regional UAW leader, refers to several unnamed persons, including one who is referred to as ‘Official A’. Union officials identified the individual as Jones, whose home was one of several raided by the FBI and IRS in August (pictured)

Agents from both agencies at the time carried out raids in at least four states, including at Jones’ Michigan home and at the California residence of his predecessor, former UAW President Dennis Williams, amid allegations of corruption within the union.

‘Official A’ is referenced throughout court documents in the case against Pearson, a union leader who overseas 17 states from Missouri to California and who faces six charges of embezzlement of union money, mail and wire fraud, money laundering and conspiracy. 

Vance Pearson (pictured), a union leader who overseas 17 states from Missouri to California faces six charges of embezzlement of union money, mail and wire fraud, money laundering and conspiracy

Vance Pearson (pictured), a union leader who overseas 17 states from Missouri to California faces six charges of embezzlement of union money, mail and wire fraud, money laundering and conspiracy

The California home of former UAW President Dennis Williams (pictured) was among those raided by federal against amid allegations of corruption within the union

The California home of former UAW President Dennis Williams (pictured) was among those raided by federal against amid allegations of corruption within the union

The charges are connected to Pearson’s work at a regional office that was once led by Jones, reports the Detroit Free Press.  

The investigations have plunged the union into scandal as it ended a 40-day strike against General Motors earlier this year, which cost the automaker $3 billion in profits. 

GM also alleged in a lawsuit filed last month that rival Fiat Chrysler bribed the UAW in an attempt to undermine the company by manipulating labor costs. 

Williams, 66, and his team are alleged to have celebrated a labor agreement between the union and Fiat Chrysler at a $7,000 dinner paid for by the company, reports the Times. The deal, despised by union membership, ended up being rejected. 

Jones, 62, is accused of the Palm Springs spending to win over union power brokers and secure his ascent to the UAW presidency in 2018. 

Neither Williams or Jones have been formally charged. 

Williams also has been identified as ‘Official B’, in court documents reviewed by the Times.

Attorney Bruce Maffeo, who is representing Jones, has dismissed the accusations as stemming “from public documents in which Gary was not charged’, the TImes reports.

And person close to Williams rejected the accusation that he encouraged the diversion or misuse of training center money, first reported in The Detroit News.

A hospitality tab, known as the ‘master account’ had been set up at lavish hotels, including the Renaissance Palm Springs and the Loews Coronado Bay Resort, which were used for a series of annual conferences. z

Union work was found to have been conducted at the hotels. However, expenses included villa rentals inside a gated community costing $5,000 per month and dinners that cost thousands of dollars. 

For example, the bill for a meal at LG’s Prime Steakehouse ran as high as $6,500, and included four bottles of Louis Roederer Cristal Champagne for $1,760, the Times reports.

A hospitality tab, known as the 'master account' had been set up at lavish hotels, including the Renaissance Palm Springs and the Lowes Coronado Bay Resort (pictured), which were used for a series of annual conferences

A hospitality tab, known as the ‘master account’ had been set up at lavish hotels, including the Renaissance Palm Springs and the Lowes Coronado Bay Resort (pictured), which were used for a series of annual conferences

Union money is alleged to have been used on dinners that cost thousands of dollars. For example, the bill for a meal at LG’s Prime Steakehouse (pictured) ran as high as $6,500, and included four bottles of Louis Roederer Cristal Champagne for $1,760

Union officials also were alleged to have plunked down more than $80,000 at the Indian Canyons Golf Resort in Palm Springs for green fees, shoes, golf bags, sunglasses, shirts and ‘fashion shorts’, according to the complaint.

Many of the items were shipped home to Michigan on a semi-truck, reports the Times.

Williams had been the UAW president for most of the time the abuse was alleged. The federal complaint alleges the union paid for a month-long stay at a villa in the winter of 2013-2014. He then had a three-month stay two years later, again on the union’s tab.

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