UAW Area Formal Accused of Embezzling $2M, Some Put in at Casino

Monday November 15, 2021 |
UAW Area Formal Accused of Embezzling $2M, Some Put in at Casino

Posted on: November 13, 2021, 11:30h. 

Past up to date on: November 14, 2021, 11:59h.

An officer with a UAW neighborhood in Michigan faces a probably prolonged federal jail expression. Which is immediately after authorities charged him embezzling far more than $2 million in the chapter’s cash, with some of the cash allegedly remaining withdrawn at ATMs inside Detroit’s Greektown Casino.

UAW embezzlement
Timothy Edmunds, noticed right here at the Greektown Casino in Detroit in June 2017. Final week, federal authorities unveiled cash laundering and embezzlement prices in opposition to Edmunds, who served as the secretary-treasurer for a UAW Area based in a Detroit suburb. (Image: USCourts.gov)

A detention listening to is established for Monday in the case of Timothy Edmunds, who designed his to start with physical appearance on Friday in the US District Courtroom for Michigan’s Japanese District. Edmunds is at this time detailed as “temporarily detained,” in accordance to courtroom data.

The grievance in the case was filed previous month and unsealed on Wednesday. That similar day, the US Attorney’s Business office for the Jap District of Michigan unveiled a statement noting Edmunds was billed with embezzling union resources, funds laundering, failing to retain union documents, and filing bogus studies to the US Department of Labor.

If Edmunds is identified guilty, he faces up to 20 yrs in jail and a $500,000 great for the revenue laundering demand, even though the embezzlement charge carries a probable five-year sentence and a $10,000 fantastic. The documents and reviews charges could have a year in prison and a $10,000 good.

For the earlier decade, Edmunds served as the Economical Secretary-Treasurer for UAW Area 412 in Warren, Mich. The Area represents Stellantis staff in the Detroit suburb, which include the company’s assembly plant liable for Dodge Ram 1500 trucks and Jeep’s Wagoneer and Grand Wagoneer.

Feds Allege ‘Chip Walking’ in Case

In the criticism submitted on Oct. 27, Andrew Donohue, a special agent with the US Department of Labor’s Workplace of Inspector General, said the division obtained a tip in August about the alleged embezzlement. He mentioned that DOL officers spoke with auditors from the UAW, who found $2 million in Community 412 money ended up diverted.

Amid the suspicious transactions flagged by auditors had been $142,000 in unauthorized rates on Edmunds’ union debit card. That incorporated $30,000 in ATM withdrawals among 2018 and 2020 at the Greektown Casino.

According to Donohue’s grievance, Edmunds allow the Detroit casino charge him extra than 700 occasions involving 2016 and 2020. In the course of that span, he had get-ins totaling a lot more than $1 million, and his whole wagering exceeded $16 million during that span.

Facts from Greektown also uncovered proof of Edmunds’ “significant ‘Chip Walking’ exercise,” indicating he would go away the on line casino without cashing in all of his chips.

For the duration of a 2016 pay a visit to, Greektown claimed that Edmunds gained much more than $25,000 in chips in the course of table games, but he only turned in $10,000. That allowed him to stay away from staying noted by the on line casino on a Currency Transaction Report, a expected filing from the federal Bank Secrecy Act.

Primarily based on over a 10 years of investigating labor racketeering and the criminals that engage therein, I know that on line casino chops are a favored method applied to launder the proceeds of unwell-gotten gains,” Donohue wrote in his criticism.

Other alleged utilizes of the cash went toward the acquire of at minimum 10 guns Edmunds purchased because 2020, and the funding or leasing of 5 cars. That features a 2020 Jeep Grand Cherokee Trackhawk ordered for $96,419, and a 2021 Dodge Durango that price tag nearly $76,500.

When initially approached about the cash, federal officials said Edmunds gave phony lender data to UAW auditors in an effort to hide the scheme.

Authorities Say Union Leaders Abused Have faith in

Edmunds gets the 17th UAW formal charged in a federal investigation into the union and unlawful payoffs to structured labor leaders from executives in Stellantis’ FCA US division.

In saying the legal grievance, federal officials mentioned that he violated the rely on of the members who elected him to the secretary-treasurer position for the previous ten years.

They also stated they would use all the federal sources available to hold him accountable.

“The associates of the UAW have earned a union no cost of corrupt and crooked leadership,” explained Acting United States Lawyer for the Jap Michigan District Saima Mohsin.  “We will carry on to root out and prosecute all those corrupt leaders who find to use UAW resources as their have own piggybank.”

The UAW Nearby 412 internet site exhibits that officer placement as blank on its leadership web page.