General Motors LLC has filed a lawsuit against one of its former board members, a former union official, whom it accuses of participating in two "widespread and protracted criminal systems." International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, served as a GM board member from August 2014 to December 2017, according to the complaint filed September 14 at the US District Court in Camden, New Jersey, General Motors LLC, General Motors Co. v. Joseph Ashton . The lawsuit was previously reported by D&O Diary.
"GM only discovered these systems recently, after dozens of accusations and guilty plots involving Ashton and his accomplices," according to the complaint, which states that Ashton appealed. guilty of conspiracy to commit fraud and money laundering on December 4, 201
The complaint alleges that Ashton "along with two other UAW officials" orchestrated a criminal kickback system to siphon money "from the UAW-GM Center for Human Resources,
The complaint also states that Ashton was involved in a bribery scheme under investigation by the U.S. Attorney for the Eastern District of Michigan in Detroit involving competitor FCA US LLC, which manufactures Chrysler and Fiat cars, and Fiat Chrysler Automobiles NV and some former union leaders.
"FCA and FCA NV specifically approved these bribes to harm GM and to advance their long-term goal of forcing GM higher costs and help FCA NV force a merger with GM ", says the complaint.
In August, a federal judge in Detroit rejected a GM bid to reintroduce a negotiation measure against Fiat Chrysler Automobiles NV in which it claimed that it had new information about foreign accounts used in an alleged bribery scheme involving FCA and UAW leaders.
The complaint filed last week accuses Mr. Ashton for trespass and fraud offenses. Catalog