- Timothy Edmunds reportedly took $2 million from the chapter.
- Money was said to have been removed at an ATM within the Greektown Casino.
- Edmunds faces several charges including money laundering, embezzling, filing false reports, and failing to maintain records of the union.
A detention hearing will take place today for Timothy Edmunds, an official of the UAW local in Michigan who faces charges for using chapter funds for his own gain. Currently, Edmunds is temporarily detained after making his first appearance in court late last week.
In a complaint filed in October, Edmunds faces several charges for reportedly using $2 million in chapter funds. He is charged with embezzlement and money laundering, as well as filing fake reports within the United States Department of Labor and failing to maintain records of the union. If he is found guilty, Edmunds could face up to 20 years in prison and a fine of over $500,000 based on the charges.
Details of the Complaint
For ten years, Edmunds has worked as the Financial Secretary-Treasurer of the UAW Local 412, which is located in Warren. The group represents employees of Stellantis which includes employees who work at the assembly plants of the company working on Dodge Rams and Wagoneer’s.
In the complaint, an agent of the US Department of Labor Office of Inspector General reported that the department received a tip back in August of possible embezzling. Officials spoke with auditors within the union who said that $2 million in funds from the Local 412 had been moved.
Among the transactions that appeared suspicious were $142,000 that was charged on the union debit card held by Edmunds. Within a two year time frame, from 2018 to 2020, Edmunds is said to have taken out $30,000 from the ATM at the Greektown casino who recently bounced back from COVID-19.
The complaint also revealed that Edmunds had bought in with over $1 million from 2016 to 2020 at the casino and his total wagering came in at over $16 million! After speaking with casino officials, it was revealed that Edmunds would leave the casino without cashing in his chips.
Edmunds was essentially holding the chips and only cashing in a certain amount so that he did not have to report the win to the government. An example would be a visit in 2016. Greektown reported that he won over $25,000 in chips while playing table games such as roulette and blackjack. However, he only turned in $10,000. Because he turned in a low amount, he was not reported by the casino. Any wins over $10,000 that are cashed in must be reported via the Bank Secrecy Act with a Currency Transaction Report.
UAW Action
The UAW is not happy with the actions of Edmunds, and they want to see him held accountable. With the arrest, Edmunds is actually the 17th official of the UAW to be charged in connection with a federal investigation. The union has been plagued with issues including illegal payoffs to organized labor officials from executives of the Stellantis FAC US division.
Saima Mohsin is the acting US Attorney for the Eastern Michigan District who said that the union members deserve to part of an organization that is free of corruption as well as crooked leadership. Federal agents plan to do all they can to remove the bad seeds and ensure that funds of the union are not used for personal gain of those in higher positions.
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