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Ex-FCA Exec Goes to Prison in Chrysler-UAW Bribery Scandal

A federal court in Detroit has imposed a 5.5-year prison term on the former head of labor relations for Fiat Chrysler Automobile NV’s U.S. operations for his role in a scheme to siphon funds from a joint FCA-UAW training center.
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A federal court in Detroit has imposed a 5.5-year prison term on the former head of labor relations for Fiat Chrysler Automobile NV’s U.S. operations for his role in a scheme to siphon funds from a joint FCA-UAW training center.

Alfons Iacobelli was indicted by a federal grand jury last summer in the $4.5 million scandal. He pleaded guilty in January to conspiracy and tax evasion for using the center’s budget to pay off United Auto Workers Union officials and buy himself a Ferrari and other items.

Federal prosecutors charged Iacobelli with using the diverted funds in large part to win labor concessions in 2011 and 2015. The union insists that neither contract was affected by the scheme.

Iacobelli is the highest-ranking official among seven convicted to date. He has agreed to cooperate in the continuing federal investigation, which could shorten his prison term. The court also ordered him to pay $835,500 in restitution to the Internal Revenue Service.

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