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

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

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

An officer with a UAW area in Michigan faces a potentially prolonged federal prison phrase. That is immediately after authorities charged him embezzling more than $2 million in the chapter’s funds, with some of the income allegedly getting withdrawn at ATMs within Detroit’s Greektown On line casino.

UAW embezzlement
Timothy Edmunds, witnessed in this article at the Greektown Casino in Detroit in June 2017. Previous week, federal authorities disclosed funds laundering and embezzlement rates versus Edmunds, who served as the secretary-treasurer for a UAW Local based in a Detroit suburb. (Impression:

A detention hearing is set for Monday in the scenario of Timothy Edmunds, who manufactured his 1st overall look on Friday in the US District Courtroom for Michigan’s Japanese District. Edmunds is now stated as “temporarily detained,” in accordance to court records.

The grievance in the circumstance was filed last thirty day period and unsealed on Wednesday. That exact day, the US Attorney’s Place of work for the Jap District of Michigan released a assertion noting Edmunds was billed with embezzling union cash, cash laundering, failing to maintain union information, and submitting untrue stories to the US Section of Labor.

If Edmunds is observed guilty, he faces up to 20 a long time in prison and a $500,000 good for the funds laundering cost, though the embezzlement charge carries a opportunity five-year sentence and a $10,000 fine. The data and reviews charges could have a 12 months in jail and a $10,000 wonderful.

For the earlier 10 years, Edmunds served as the Financial Secretary-Treasurer for UAW Neighborhood 412 in Warren, Mich. The Neighborhood signifies Stellantis personnel in the Detroit suburb, together with the company’s assembly plant dependable for Dodge Ram 1500 vans and Jeep’s Wagoneer and Grand Wagoneer.

Feds Allege ‘Chip Walking’ in Circumstance

In the criticism filed on Oct. 27, Andrew Donohue, a particular agent with the US Section of Labor’s Business of Inspector Common, claimed the department received a tip in August about the alleged embezzlement. He mentioned that DOL officers spoke with auditors from the UAW, who found $2 million in Local 412 cash had been diverted.

Among the the suspicious transactions flagged by auditors were being $142,000 in unauthorized fees on Edmunds’ union debit card. That incorporated $30,000 in ATM withdrawals in between 2018 and 2020 at the Greektown On line casino.

According to Donohue’s complaint, Edmunds enable the Detroit casino rate him a lot more than 700 occasions in between 2016 and 2020. All through that span, he experienced purchase-ins totaling extra than $1 million, and his overall wagering exceeded $16 million in the course of that span.

Information from Greektown also uncovered evidence of Edmunds’ “significant ‘Chip Walking’ exercise,” indicating he would depart the on line casino with no cashing in all of his chips.

Through a 2016 check out, Greektown described that Edmunds won extra than $25,000 in chips during desk games, but he only turned in $10,000. That allowed him to avoid becoming noted by the on line casino on a Currency Transaction Report, a expected filing from the federal Bank Secrecy Act.

Based on in excess of a decade of investigating labor racketeering and the criminals that interact therein, I know that casino chops are a favored strategy used to launder the proceeds of unwell-gotten gains,” Donohue wrote in his complaint.

Other alleged works by using of the money went toward the purchase of at least 10 guns Edmunds purchased considering the fact that 2020, and the financing or leasing of five autos. That contains a 2020 Jeep Grand Cherokee Trackhawk bought for $96,419, and a 2021 Dodge Durango that cost just about $76,500.

When to begin with approached about the money, federal officers mentioned Edmunds gave phony financial institution information to UAW auditors in an work to conceal the plan.

Authorities Say Union Leaders Abused Belief

Edmunds gets to be 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 criticism, federal officials reported that he violated the have confidence in of the associates who elected him to the secretary-treasurer place for the previous 10 years.

They also mentioned they would use all the federal resources out there to keep him accountable.

“The customers of the UAW should have a union no cost of corrupt and crooked leadership,” explained Performing United States Lawyer for the Eastern Michigan District Saima Mohsin.  “We will continue to root out and prosecute individuals corrupt leaders who find to use UAW funds as their have personalized piggybank.”

The UAW Regional 412 web page shows that officer place as blank on its leadership site.