Ex-FCA official Iacobelli sentenced to 66 months in UAW training center scandal







Alphons Iacobelli, former vice president of union relations at Fiat Chrysler Automobiles, right, arrives with his wife, Susanne Iacobelli, at federal court in Detroit on Monday Photo credit: Bloomberg

DETROIT — Former Fiat Chrysler Automobiles labor relations chief Alphons Iacobelli was sentenced to 66 months in prison for his role in a scheme to siphon millions from the UAW-Chrysler National Training Center here.

He is the highest-ranking person to have worked at the automaker convicted in the scandal to date.

Iacobelli in January pleaded guilty to federal charges of conspiring to violate the Labor Management Relations Act and for subscribing a false tax return. He had faced a statutory maximum of eight years in prison. 

He also faces tax restitution of $835,000. A hearing on that restitution will held at a future date.

Prosecutors say Iacobelli’s purchases using the stolen money included a 2013 Ferrari 458 Spider and two solid-gold Mont Blanc pens, each valued at $37,500. Iacobelli sold the sports car when news of the probe emerged.

A 14-page memorandum of sentencing for Iacobelli released last week stated: “FCA sought to obtain benefits, concessions and advantages in the negotiation and administration of collective bargaining agreements with the UAW in an effort to buy labor peace. High-level officials of the UAW sought to enrich themselves and live lavish lifestyles rather than zealously work on behalf of the best interests of tens of thousands of rank and file members of their union.”

The memo also noted that, for certain aspects of FCA’s negotiations and relationship with the UAW, Iacobelli reported directly to the automaker’s late CEO, Sergio Marchionne — though it doesn’t mention Marchionne by name.

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