Iocobelli Pleads Guilty to Criminal Charges
Alphons Iacobelli, the former labor relations chief officer at Fiat Chrysler Automobiles Company finally pleaded guilty to charges of creating a heinous plan to siphon millions of dollars from the employees’ training fund. This was a shock to many since a not guilty plea had been submitted to the court last year in August by his lawyers.
During the court hearing on January 22rd, 2018, Iacobelli confessed to having conspired to violate the stipulated Labor Management Relations Act that all companies are expected to obey as well as presenting a false tax return before Paul Borman, the current U.S. District Judge in Detroit.
Following this unprecedented turn of events in this case, the judge has set the sentencing date for May 29, 2018. Iacobelli may face a jail sentence of up to a maximum of 8 years for these crimes. The prosecutors have also stated that he will also be required to repay a total of $835,000.
This case is one among many cases that have attracted the attention of various federal investigation units whereby the top management executives have devised plans to embezzle funds that are set aside to improve the skills and experience of employees in their respective automobile companies.
At the moment, probes have spread to General Motors and Ford Motor Co. UAW training centers. In November 2017, both automobile companies, Ford and General Motors, stated that they were cooperating fully with the federal authorities in an investigation into suspected misappropriation of funds at UAW union training centers across the country. It is important to note that these training centers are funded by United States automakers. General Motors has also gone the extra mile to conduct an internal investigation to unearth the conspiracy.
Since Iocobelli has already testified to engaging in fraud, he still needs to provide credible and verifiable information that the government can use to further carry out its investigation before sentencing him. He could also opt to cooperate fully with the investigators and provide details of his personal interactions with other top management officials.