UAW Neighborhood Official Accused of Embezzling $2M, Some Expended at On line 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 most likely prolonged federal jail phrase. Which is soon after authorities charged him embezzling extra than $2 million in the chapter’s resources, with some of the revenue allegedly being withdrawn at ATMs within Detroit’s Greektown Casino.

UAW embezzlement
Timothy Edmunds, observed right here at the Greektown Casino in Detroit in June 2017. Final week, federal authorities disclosed money laundering and embezzlement costs against Edmunds, who served as the secretary-treasurer for a UAW Nearby centered in a Detroit suburb. (Graphic:

A detention listening to is set for Monday in the circumstance of Timothy Edmunds, who created his initial physical appearance on Friday in the US District Courtroom for Michigan’s Eastern District. Edmunds is at this time listed as “temporarily detained,” according to court docket documents.

The criticism in the situation was filed very last month and unsealed on Wednesday. That exact working day, the US Attorney’s Business for the Japanese District of Michigan released a statement noting Edmunds was billed with embezzling union money, cash laundering, failing to keep union data, and filing fake reports to the US Office of Labor.

If Edmunds is found responsible, he faces up to 20 many years in jail and a $500,000 great for the money laundering cost, when the embezzlement demand carries a opportunity 5-year sentence and a $10,000 good. The information and experiences fees could carry a 12 months in jail and a $10,000 fantastic.

For the past 10 years, Edmunds served as the Financial Secretary-Treasurer for UAW Community 412 in Warren, Mich. The Area represents Stellantis personnel in the Detroit suburb, which include the company’s assembly plant accountable for Dodge Ram 1500 vans and Jeep’s Wagoneer and Grand Wagoneer.

Feds Allege ‘Chip Walking’ in Case

In the grievance submitted on Oct. 27, Andrew Donohue, a special agent with the US Section of Labor’s Office environment of Inspector General, said the department been given a tip in August about the alleged embezzlement. He stated that DOL officers spoke with auditors from the UAW, who discovered $2 million in Regional 412 money were diverted.

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

According to Donohue’s grievance, Edmunds permit the Detroit on line casino rate him more than 700 instances amongst 2016 and 2020. Through that span, he had purchase-ins totaling a lot more than $1 million, and his complete wagering exceeded $16 million all through that span.

Facts from Greektown also uncovered evidence of Edmunds’ “significant ‘Chip Walking’ activity,” which means he would depart the casino devoid of cashing in all of his chips.

In the course of a 2016 check out, Greektown described that Edmunds gained far more than $25,000 in chips through desk video games, but he only turned in $10,000. That authorized him to steer clear of becoming noted by the casino on a Forex Transaction Report, a needed submitting from the federal Bank Secrecy Act.

Based on about a 10 years of investigating labor racketeering and the criminals that interact therein, I know that on line casino chops are a favored technique employed to launder the proceeds of unwell-gotten gains,” Donohue wrote in his grievance.

Other alleged utilizes of the cash went toward the obtain of at minimum 10 guns Edmunds bought considering that 2020, and the funding or leasing of 5 vehicles. That contains a 2020 Jeep Grand Cherokee Trackhawk bought for $96,419, and a 2021 Dodge Durango that charge virtually $76,500.

When at first approached about the cash, federal officers explained Edmunds gave phony bank documents to UAW auditors in an exertion to disguise the plan.

Authorities Say Union Leaders Abused Trust

Edmunds results in being 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 asserting the legal complaint, federal officials claimed that he violated the belief of the members who elected him to the secretary-treasurer posture for the past decade.

They also said they would use all the federal means available to keep him accountable.

“The members of the UAW are entitled to a union no cost of corrupt and crooked management,” reported Acting United States Legal professional for the Japanese Michigan District Saima Mohsin.  “We will continue to root out and prosecute those people corrupt leaders who seek to use UAW funds as their personal personal piggybank.”

The UAW Community 412 web page exhibits that officer placement as blank on its management site.