UAW Regional Official Accused of Embezzling $2M, Employing Union Debit Card at Greektown

UAW Neighborhood Official Accused of Embezzling $2M, Making use of Union Debit Card at Greektown

Posted on: November 13, 2021, eleven:30h.&nbsp

Final updated on: November 14, 2021, eleven:59h.

An officer with a UAW regional in Michigan faces a potentially lengthy federal prison phrase. That’s right after authorities charged him embezzling more than $2 million in the chapter’s funds, with some of the funds allegedly being withdrawn at ATMs within Detroit’s Greektown Casino.

UAW embezzlement
Timothy Edmunds, witnessed right here at the Greektown Casino in Detroit in June 2017. Last week, federal authorities uncovered funds laundering and embezzlement expenses towards Edmunds, who served as the secretary-treasurer for a UAW Neighborhood based mostly in a Detroit suburb. (Image: USCourts.gov)

A detention hearing is set for Monday in the situation of Timothy Edmunds, who created his first visual appeal on Friday in the US District Court for Michigan’s Eastern District. Edmunds is at present listed as “temporarily detained,” according to court records.

The complaint in the situation was filed last month and unsealed on Wednesday. That very same day, the US Attorney’s Office for the Eastern District of Michigan launched a statement noting Edmunds was charged with embezzling union funds, income laundering, failing to preserve union information, and filing false reviews to the US Division of Labor.

If Edmunds is located guilty, he faces up to twenty many years in prison and a $500,000 fine for the cash laundering charge, whilst the embezzlement charge carries a likely five-year sentence and a $10,000 fine. The information and reviews expenses could carry a yr in prison and a $ten,000 fine.

For the previous decade, Edmunds served as the Economic Secretary-Treasurer for UAW Local 412 in Warren, Mich. The Local represents Stellantis employees in the Detroit suburb, such as the company’s assembly plant responsible for Dodge Ram 1500 trucks and Jeep’s Wagoneer and Grand Wagoneer.

Feds Allege ‘Chip Walking’ in Case

In the complaint filed on Oct. 27, Andrew Donohue, a special agent with the US Division of Labor’s Office of Inspector Basic, mentioned the department acquired a tip in August about the alleged embezzlement. He mentioned that DOL officials spoke with auditors from the UAW, who identified $two million in Local 412 funds had been diverted.

Amongst the suspicious transactions flagged by auditors were $142,000 in unauthorized expenses on Edmunds’ union debit card. That integrated $thirty,000 in ATM withdrawals in between 2018 and 2020 at the Greektown Casino.

According to Donohue’s complaint, Edmunds let the Detroit casino charge him a lot more than 700 instances between 2016 and 2020. Throughout that span, he had acquire-ins totaling much more than $one million, and his complete wagering exceeded $16 million in the course of that span.

Data from Greektown also uncovered proof of Edmunds’ “significant ‘Chip Walking’ action,” meaning he would depart the casino with no cashing in all of his chips.

For the duration of a 2016 check out, Greektown reported that Edmunds won more than $25,000 in chips in the course of table video games, but he only turned in $10,000. That allowed him to avoid being reported by the casino on a Currency Transaction Report, a necessary filing from the federal Bank Secrecy Act.

Primarily based on in excess of a decade of investigating labor racketeering and the criminals that engage therein, I know that casino chops are a favored approach employed to launder the proceeds of unwell-gotten gains,” Donohue wrote in his complaint.

Other alleged makes use of of the funds went towards the obtain of at least 10 guns Edmunds purchased because 2020, and the financing or leasing of 5 vehicles. That involves a 2020 Jeep Grand Cherokee Trackhawk bought for $96,419, and a 2021 Dodge Durango that value almost $76,500.

When initially approached about the money, federal officials stated Edmunds gave phony financial institution data to UAW auditors in an hard work to hide the scheme.

Authorities Say Union Leaders Abused Trust

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

In announcing the criminal complaint, federal officials mentioned that he violated the trust of the members who elected him to the secretary-treasurer place for the past decade.

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

“The members of the UAW deserve a union free of corrupt and crooked leadership,” said Acting United States Lawyer for the Eastern Michigan District Saima Mohsin.&nbsp “We will carry on to root out and prosecute individuals corrupt leaders who seek to use UAW funds as their personal individual piggybank.”

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

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