Ex Fiat Chrysler exec pleads guilty in union payoff scheme

DETROIT — A former Fiat Chrysler executive who handled labour relations has pleaded guilty to showering more than $1.5 million in cash and gifts on high-ranking members of the United Auto Workers.

Al Iacobelli admits that he was trying to gain an advantage for Fiat Chrysler during his relationship with the union. He pleaded guilty Jan. 23 to conspiracy and a tax crime and faces eight years in federal prison.

Iacobelli acknowledged that a $262,000 mortgage was paid off on the suburban Detroit home of UAW vice-president General Holiefield in 2014. Holiefield was responsible for negotiating with Fiat Chrysler on behalf of the union. He died in 2015. His wife is charged in the case.

The money for the scheme came from the UAW-Chrysler National Training Center in Detroit.