Former UAW President Gary Jones pleaded not guilty at his arraignment today. He’s expected to take a plea deal in June.
Former UAW President Gary Jones pleaded not guilty to federal charges of embezzling more than $1 million from the union and failing to pay taxes on the money in U.S. District Court in Detroit. Jones, who resigned last year, is expected to plead guilty in June after further talks with federal prosecutors.
Bruce Maffeo, Jones’ attorney, entered the plea on his behalf during a videoconference hearing. Jones was then released on a $10,000 unsecured bond. As condition of his release, he surrendered his passport and cannot travel outside the continental United States.
Jones had been the target of a long investigation by the U.S. Attorney’s office and several other agencies investigating corruption within the union. Prior to Jones, who was charged in March, 13 other former union executives have either been charged, pleaded guilty or are serving time in jail due to the investigation.
(Ex-UAW President Gary Jones facing criminal arraignment.)
Jones, 63, resigned as president as well as his membership in the union after senior leaders removed him from office. The investigation has put the union in some uncomfortable crosshairs and federal officials have suggested that it could be subject to a takeover, pending further investigation.
U.S. Attorney Matthew Schneider said recently that a federal takeover of the UAW is a possibility.
The UAW offered a response after his arraignment, which also addressed the changes the union has been making since Rory Gamble was named president in hopes of keeping federal officials from a Teamsters-style oversight role.
“If Gary Jones is found guilty of using his high-ranking position to steal sacred dues money, it would be an unforgivable violation of his oath of office and an utter betrayal of the hard-working men and women who elected him,” the union said in a statement.
“Under the leadership of President Rory L. Gamble, the UAW is instituting and operating under a system of transparency that includes a comprehensive ethics program and enhanced systems of financial oversight and accountability.”
(Feds charge former UAW President Jones with embezzlement, failure to pay taxes.)
The union added that it is operating differently that it has since Jones left and “and the changes and new policies that have been implemented have made this union a better, stronger and more honorable organization.”
UAW President Rory Gamble is taking actions aimed at staving off federal oversight of the union, like the Teamsters union.
It’s uncertain at this point if those changes will be enough. In late March, Gamble agreed to meet with federal prosecutors, who have been critical of the union’s level of assistance during the ongoing investigation of corruption involving the union and automakers.
In early March, U.S. Attorney Matthew Schneider hinted that the union could be placed under government supervision due to the lack of internal controls during the press conference announcing charges against Jones.
“It’s always an option,” he said during a press conference in Detroit Thursday afternoon, adding that former Teamsters President James Hoffa called that union’s time under federal control “positive. I think that’s something we should all pay attention to.”
(UAW President Gamble agrees to meet with federal prosecutors.)
In preparation for the meeting, according to the Detroit News, the UAW hired a prominent New York law firm, Cleary Gottlieb Steen & Hamilton. The firm will help the union with what the UAW described in a statement as “technical assistance with our ethics and compliance reform efforts” to root out corruption within one of the nation’s most prominent unions.