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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

UNITED STATES OF AMERICA,

Case No. 17-cr-20406
HONORABLE PAUL D. BORMAN

V.

Violations: Conspiracy to Violate
the Labor Management Relations
Act (18 U.S.C. § 371)

D-6 NANCY A. JOHNSON,

Defendant.
Receiving and Accepting Prohibited
Money and Things of Value From
A Union Employer (29 U.S.C.
§§ 186(b)(l) & (d)(l))

FOURTH SUPERSEDING INDICTMENT
THE GRAND JURY CHARGES:

FILED USDC- DT
2018 MAR 14 PM3: 10

General Allegations
At times relevant to this Fourth Superseding Indictment:
1.

The Labor Management Relations Act, commonly known as the Taft

Hartley Act, prohibited employers and persons acting in the interest of employers
from paying, lending, or delivering, or agreeing to pay, lend, or deliver, any money
or other thing of value to any officer or employee of a labor organization
representing its employees.

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2.

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The Labor Management Relations Act also prohibited any officer or

employee of a labor organization representing the employees of an employer from
receiving, accepting, or agreeing to receive or accept, any money or other thing of
value from that employer or from any person acting in the interest of that
employer.
3.

One of the purposes of the Labor Management Relations Act was to

combat the corruption of the collective bargaining process that occurs when a
union employer gives something of value to a union representative.

Relevant Organizations
4.

Fiat Chrysler Automobiles US LLC was an automotive company

based in Auburn Hills, Michigan, and the successor to the automotive company
formerly known as Chrysler Group LLC. Both are referred to here as "FCA." FCA
manufactured and sold automobiles in the United States under brands such as
Chrysler, Jeep, Dodge, and Ram. FCA was an employer in an industry affecting
interstate commerce and subject to the Labor Management Relations Act, 29
U.S.C. §§ 142 & 152.
5.

The International Union, United Automobile, Aerospace, and

Agricultural Implement Workers of America (UAW) was a labor organization
based in Detroit, Michigan. The UAW represented tens of thousands of non2

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managerial employees employed by FCA at numerous locations in Michigan and
across the United States. The UAW was a labor organization subject to the Labor
Management Relations Act, 29 U.S.C. §§ 142 & 152.
The UAW-Chrysler Skill Development & Training Program d/b/a the

6.

UAW-Chrysler National Training Center (NTC) was a tax-exempt corporation
based in Detroit, Michigan. The NTC purported to function as a labor management
committee under the Labor Management Relations Act, 29 U.S.C. § 186(c)(9). The
stated purpose of the NTC was to provide for the education, training, and retraining
of workers.
7.

The governing body of the NTC was known as the Joint Activities

Board. The Vice President of Employee Relations of FCA and the Vice President
of the Chrysler Department of the UAW served as the Chairmen of the NTC Joint
Activities Board. The remainder of the Joint Activities Board was made up of
senior officials from the UAW and executives from FCA.

Collective Bargaining Agreements between FCA and the UAW
8.

Approximately every four years FCA and the UA W engaged in

national negotiations resulting in a collective bargaining agreement that set wages,
attendance policies, profit sharing, ratification bonuses, holidays, and other
working conditions for FCA employees represented by the UAW.
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9.

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In and after July 2015, UAW and FCA held national negotiation

sessions that resulted in collective bargaining agreements covering tens of
thousands of FCA employees represented by the UAW.
The Defendants
10.

Nancy A. Johnson (D-6) was a UAW employee who served as a

senior official in the UAW Chrysler Department from 2014 through 2016. As a
senior UAW official in the Chrysler Department, Nancy A. Johnson was
responsible for negotiating and administering the collective bargaining agreements
between the UAW and FCA. In 2015, Nancy A. Johnson served as a member of
the UAW national committee responsible for negotiating the terms of the collective
bargaining agreements between the UAW and FCA. In September 2015, Nancy
A. Johnson and the other members of the UAW national committee announced
that they had reached a tentative agreement with FCA, which agreement was
thereafter rejected by a majority vote of the UAW membership.
11.

Virdell King (D-4) was a UAW employee who served as a senior

official in the UAW Chrysler Department from 2008 until 2016. As a senior UAW
official in the Chrysler Department, Virdell King was responsible for negotiating
and administering the collective bargaining agreements between the UAW and
FCA on behalf of tens of thousands ofFCA employees represented by the UAW.
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In 2011 and2015, Virdell King served as a member of the UAW national
committee responsible for negotiating the terms of the collective bargaining
agreements between the UAW and FCA.
12.

Keith Mickens (D-5) was a UAW employee who served as a senior

official in the UAW Chrysler Department from 2010 through 2015. As a senior
UAW official in the Chrysler Department, Keith Mickens was responsible for
negotiating and administering the collective bargaining agreements between the
UAW and FCA on behalf of tens of thousands of FCA employees represented by
the UAW. In 2011, Keith Mickens served as a member of the UAW national
committee responsible negotiating the terms of the collective bargaining
agreements between the UAW and FCA.
13.

Alphons Iacobelli (D-2) was the FCA Vice President for Employee

Relations and a person acting in the interest of employer FCA from 2008 through
2015. As the FCA Vice President for Employee Relations, Alphons Iacobelli was
the senior FCA official responsible for negotiating with the UAW and for
administering the collective bargaining agreements between FCA and the UAW.
14.

Jerome Durden (D-1) was a Financial Analyst in FCA's Corporate

Accounting Department. From 2008 through 2015, Jerome Durden was the

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Controller of the NTC and served as the secretary of the NTC Joint Activities
Board.
15.

All dates in this Fourth Superseding Indictment are alleged to have

occurred on or about the stated dates.

COUNT ONE
(18 U.S.C. § 371- Conspiracy to Violate the
Labor Management Relations Act)
D-6 NANCY A. JOHNSON
1.

Paragraphs 1 through 15 of the General Allegations are incorporated

by reference here.
2.

Between in or about 2014 through 2016, within the Eastern District of

Michigan and elsewhere, Nancy A. Johnson, Virdell King, Keith Mickens,
Alphons Iacobelli, Jerome Durden, and other individuals and entities known and
unknown to the grand jury, did knowingly and voluntarily conspire to violate the
Labor Management Relations Act. The objects of this conspiracy were:
(a) that one or more persons acting in the interest of employer FCA
would willfully pay and deliver-and agree to pay and deliver-money and
things of value to officers and employees of the UAW, the labor
organization representing its employees, using the NTC with the intent to
benefit persons who they knew were not permitted to receive the money and
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things ofvalue, in violation of Title 29, United States Code, Section
186(a)(2), (d)(l); and
(b) that officers and employees of the U AW would willfully request,
receive, and accept-and agree to receive and accept-money and things of
value from employer FCA and one or more persons acting in the interest of
FCA, using the NTC with the intent to benefit themselves and other persons
who they knew were not permitted to receive the money and things of value,
in violation ofTitle 29, United State Code, Section 186(b)(l), (d)(l).
3.

Over the course of the conspiracy, FCA Vice President Alphons

Iacobelli, FCA Financial Analyst Jerome Durden, and other FCA executives acting
in the interest of employer FCA, unlawfully paid and delivered more than $1 ,000
in prohibited payments and things of value, directly and indirectly, to senior UAW
official Nancy A. Johnson, to senior UAW official Virdell King, to senior UAW
official Keith Mickens, and to other UAW officials. The prohibited payments and
things of value

includ~d

tens of thousands of dollars in personal travel, golf resort

fees, lavish meals, limousine services, designer clothing, jewelry, designer shoes,
golf equipment, electronics, and a shotgun.
4.

FCA Vice President Alphons Iacobelli, FCA Financial Analyst

Jerome Durden, and their co-conspirators used NTC bank accounts and NTC credit
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card accounts to conceal prohibited payments and things of value paid and
delivered to senior UAW official Nancy A. Johnson, to senior UAW official
Virdell King, to senior UAW official Keith Mickens, and to other UAW officials.
5.

FCA Vice President Alphons Iacobelli was the Co-Chairman of the

NTC and the NTC Joint Activities Board from 2008 through 2015.
6.

FCA provided the funding for the NTC. From 2009 to 2015, FCA

made annual transfers to the NTC ofbetween approximately $13 million and
approximately $31 million per year. During that time, FCA executives, including
FCA Vice President Alphons Iacobelli and FCA Financial Analyst Jerome Durden
controlled the finances and spending of the NTC.
7.

The stated purpose of the NTC was to provide for the education,

training, and retraining of FCA workers. However, FCA Vice President Alphons
Iacobelli, FCA Financial Analyst Jerome Durden, and other FCA executives acting
in the interest of employer FCA, directed tens of thousands of dollars in NTC
funds to pay for personal purchases, personal expenditures, and personal travel of
senior UAW official Nancy A. Johnson, senior UAW official Virdell King, senior
UAW official Keith Mickens, other UAW officials, and their associates and family
members.
8.

In and before 2014, FCA Vice President Alphons Iacobelli directed

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FCA Financial Analyst Jerome Durden to obtain credit cards for senior UAW
official Nancy A. Johnson, senior UAW official Virdell King, senior UAW official
Keith Mickens and other UAW officials. The credit cards were issued through
accounts maintained in the name of the NTC and were paid for with funds
provided by FCA. FCA Vice President Alphons Iacobelli, FCA Financial Analyst
Jerome Durden, and their co-conspirators used the NTC credit cards to conceal
prohibited payments and things of value paid and delivered to senior UAW official

Nancy A. Johnson, to senior UAW official Virdell King, to senior UAW official
Keith Mickens, and to other UAW officials.
9.

In and after 2014, FCA Vice President Alphons Iacobelli, FCA

Financial Analyst Jerome Durden and other FCA executives encouraged and
authorized senior UAW official Nancy A. Johnson and other senior UAW
officials to use the NTC credit cards to pay for personal purchases and personal
expenditures in an effort to obtain benefits, concessions, and advantages in the
negotiation, implementation, and administration of the collective bargaining
agreements between FCA and the UAW.

Overt Acts
10.

One or more members of the conspiracy completed one or more of the

following acts to effect the object of the conspiracy:
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11.

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In June 2014, the UAW President approved the appointment of Nancy

A. Johnson as the Top Administrative Assistant to the Vice President for the

UAW Chrysler Department. As the Top Administrative Assistant, Nancy A.
Johnson was the second most senior official in the UAW Chrysler Department.

12.

In October and December 2014, at the direction of Nancy A.

Johnson, Virdell King spent $1,259 to purchase luggage for Nancy A. Johnson at

the London Luggage Shop in Detroit, Michigan. The luggage was paid for by the
NTC using funds provided by FCA.
13.

In December 2014, Nancy A. Johnson spent and caused to be spent

$1 ,914 to purchase an airline ticket for herself for travel between Michigan and
Palm Springs, California. The first-class air travel was paid for by the NTC using
funds provided by FCA.
14.

In December 2014, Nancy A. Johnson spent and caused to be spent

$2,3 82 to purchase an airline ticket for her associate ("LR") for travel between
Detroit, Michigan and Los Angeles, California. The first-class travel was paid for
by the NTC using funds provided by FCA.
15. In December 2014, Nancy A. Johnson spent and caused to be spent
$2,3 82 to purchase an airline ticket for herself for travel between Detroit, Michigan
and Los Angeles, California. The first-class travel was paid for by the NTC using
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funds provided by FCA.
16.

In January 2015, Nancy A. Johnson spent over $1,800 at Indian

Canyons Golf Resort in Palm Springs, California. The golf resort fees and related
purchases were paid for by the NTC using funds provided by FCA.
17.

In January 2015, Nancy A. Johnson spent $4,587 for a meal at LG's

Prime Steak House in Palm Springs, California. The meal was paid for by the
NTC using funds provided by FCA.
18.

In January 2015, Nancy A. Johnson spent $1,652 at Cardliff

Limousine in Palm Springs, California. The round-trip limousine travel between
Palm Springs, California and San Diego, California was paid for the NTC using
funds provided by FCA.
19.

In January 2015, Nancy A. Johnson spent over $1,800 at St. John

Knits and other retail stores located in and around Palm Springs, California. The
designer clothing, jewelry, and accessories were paid for by the NTC using funds
provided by FCA.
20.

In January and February of2015, Nancy A. Johnson spent over

$6,900 at the Renaissance Resort & Spa in Palm Springs, California. The resort
and spa fees were paid for by the NTC using funds provided by FCA.
21.

In February 2015, Nancy A. Johnson spent $1,217 at Salon Bilal in
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Pasadena, California. The salon and spa services were paid for by the NTC using
funds provided by FCA.
22.

In March 2015, Nancy A. Johnson spent $1,160 at Neiman Marcus

online for a pair of Christian Louboutin shoes. The designer shoes were paid for
by the NTC using funds provided by FCA.
23.

In April2015, Nancy A. Johnson spent over $1,700 for a set of

graphite women's golf clubs and a diva cart bag purchased from Amazon.com.
The golf equipment was paid for by NTC using funds provided by FCA.
24.

In May 2015, Nancy A. Johnson spent over $1,000 at Divalicious,

and other retail stores located in Orlando, Florida and Clinton Township,
Michigan. The designer clothing, accessories, and home furnishings were paid for
by the NTC using funds provided by FCA.
25.

In and after July 2015, Nancy A. Johnson served as a member of the

UAW National Committee negotiating, on behalf of tens of thousands ofUAW
members, against FCA for the terms of new collective bargaining agreements.
26.

In August 2015, Nancy A. Johnson directed Virdell King to purchase

a shotgun to be presented as a birthday present to another senior UAW officer. At
the direction of Nancy A. Johnson, Virdell King spent $2,182 to purchase an
Italian-made Beretta shotgun at Field & Stream in Troy, Michigan. The shotgun
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was paid for by the NTC, using funds provided by FCA.
27.

In September 2015, Nancy A. Johnson spent $6,912 at the London

Chop House in Detroit, Michigan. The meal was paid for by NTC using funds
provided by FCA.
All in violation of Title 18, United States Code, Section 371.

COUNT TWO
29 U.S.C. § 186(b)(l) & (d)(l)- Receiving and Accepting
Prohibited Money and Things of Value from a Union Employer
D-6 NANCY A. JOHNSON
1.

Paragraphs 1 through 15 of the General Allegations are incorporated

by reference here.
2.

In December 2014, in the Eastern District of Michigan and elsewhere,

Nancy A. Johnson, an employee of the UAW, a labor organization representing
the employees ofFCA, willfully received and accepted, and agreed to receive and
accept, money and things of value from Alphons Iacobelli (D-2), Jerome Durden
(D-1) and others acting in the interest of employer FCA, with the intent to benefit a
person she knew was not permitted to receive and accept the money and things of
value, that is, the expenditure of over $1,000 for the purchase of an airline ticket
for her companion ("LR"), which expenditure was paid for with funds provided by
FCA.
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All in violation of Title 29, United States Code, Sections 186(b)(1), (d)(l).

COUNT THREE
29 U.S.C. § 186(b)(l) & (d)(l)- Receiving and Accepting
Prohibited Money and Things of Value from a Union Employer
D-6 NANCY A. JOHNSON
1.

Paragraphs 1 through 15 of the General Allegations are incorporated

by reference here.
2.

In January 2015, in the Eastern District of Michigan and elsewhere,

Nancy A. Johnson, an employee of the UAW, a labor organization representing
the employees of FCA, willfully received and accepted, and agreed to receive and
accept, money and things of value from Alphons Iacobelli (D-2), Jerome Durden
(D-1) and others acting in the interest of employer FCA, with the intent to benefit a
person she knew was not permitted to receive and accept the money and things of
value, that is, the expenditure of over $1,000 for limousine services, which
expenditure was paid for with funds provided by FCA.
All in violation of Title 29, United States Code, Sections 186(b)(l), (d)(l).

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COUNT FOUR
29 U.S.C. § 186(b)(l) & (d)(l)- Receiving and Accepting
Prohibited Money and Things of Value from a Union Employer
D-6 NANCY A. JOHNSON
1.

Paragraphs 1 through 15 ofthe General Allegations are incorporated

by reference here.
2.

In March 2015, in the Eastern District of Michigan and elsewhere,

Nancy A. Johnson, an employee of the UAW, a labor organization representing
the employees ofFCA, willfully received and accepted, and agreed to receive and
accept, money and things of value from Alphons Iacobelli (D-2), Jerome Durden
(D-1) and others acting in the interest of employer FCA, with the intent to benefit a
person she knew was not permitted to receive and accept the money and things of
value, that is, the expenditure of over $1,000 for a pair of designer shoes, which
expenditure was paid for with funds provided by FCA.
All in violation of Title 29, United States Code, Sections 186(b)( 1), (d)( 1).

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COUNT FIVE
29 U.S.C. § 186(b)(l) & (d)(l)- Receiving and Accepting
Prohibited Money and Things of Value from a Union Employer
D-6 NANCY A. JOHNSON
1.

Paragraphs 1 through 15 of the General Allegations are incorporated

by reference here.
2.

In April2015, in the Eastern District of Michigan and elsewhere,

Nancy A. Johnson, an employee of the UAW, a labor organization representing
the employees ofFCA, willfully received and accepted, and agreed to receive and
accept, money and things of value from Alphons Iacobelli (D-2), Jerome Durden
(D-1) and others acting in the interest of employer FCA, with the intent to benefit a
person she knew was not permitted to receive and accept the money and things of
value, that is, the expenditure of over $1,000 for golf equipment, which
expenditure was paid for with funds provided by FCA.
All in violation of Title 29, United States Code, Sections 186(b)(l), (d)(l).

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THIS IS A TRUE BILL.

/s/ GRAND JURY FOREPERSON
GRAND JURY FOREPERSON
MATTHEW SCHNEIDER
United States Attorney

s/Bruce C. Judge
Bruce C. Judge
Assistant United States Attorney
211 W. Fort Street, Suite 2001
Detroit, Michigan 48226
Bruce.Judge@usdoj. gov

s/Charles J. Kalil II
Charles J. Kalil II
Assistant United States Attorney
211 W. Fort Street, Suite 2001
Detroit, Michigan 48226
Charles.Kalil@usdoj .gov

Date: March 14, 2018

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United States District Court
Eastern District of Michigan

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Criminal Case Cover Sheet

Pg ID 411

Case Number
17-cr-20406

NOTE: It is the responsibility of the Assistant U.S. Attorney signing this form to complete it accurately in all respects.

Companion Case Number:
This may be a companion case based upon LCrR 57.10 (b)(4) 1 :

~No

Dves

Judge Assigned:
AUSA's Initials:

Case Title: USA v. NANCY A JOHNSON
County where offense occurred : Wayne County, Oakland County & Macomb County
Check One:

~Felony

D Misdemeanor

0Petty

__ lndictmenU__ Information --- no prior complaint.
lndictmenU__ Information --- based upon prior complaint [Case number:
_LindictmenU__ Information --- based upon LCrR 57.10 (d) [Complete Superseding section below].

Superseding to Case No: 17-cr-20406

Judge: PAUL D. BORMAN

--------------------------

D Corrects errors; no additional charges or defendants.
D Involves, for plea purposes, different charges or adds counts.
~Embraces

same subject matter but adds the additional defendants or charges below:

Defendant name
D-6 NANCY A JOHNSON

Charges
18 U.S.C. § 371
29 U.S.C. §§ 186(b)(1) &

Prior Complaint (if applicable)
N/A

(d)(1)

Please take notice that the below listed Assistant United 5"-tes Attorney is the attorney of record for
the above captioned case.
~
~
~\
_
March 14 2018

'

Date

. (

•

J ~---~" · ·

BRUCE C . JUDGE
Assistant United States Attorney
211 W. Fort Street, Suite 2001
Detroit, Ml 48226-3277
Phone:313-226-9122
Fax:
313-226-3413
E-Mail address: Bruce.Judge@usdoj.gov
Attorney Bar #: CA 148805

1 Companion cases are matters in which it appears that (1) substantially similar evidence will be offered at trial, or (2) the same
or related parties are present, and the cases arise out of the same transaction or occurrence. Cases may be companion cases
even though one of them may have already been terminated.
t:;

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