More than $2 million misappropriated by union local officer, UAW audit finds

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UAW auditors have alleged that a financial secretary at Local 412 in suburban Detroit misappropriated funds.

Internal auditors said they discovered more than $2 million in “improper personal expenditures” by the employee. In a statement, UAW International Secretary-Treasurer Frank Stuglin characterized it as an “elaborate” embezzlement scheme by the locally elected officer. Local 412 represents Stellantis employees in Warren, Mich.

The union said the Local 412 financial secretary has been suspended. The audit’s findings have been referred to the U.S. Department of Labor and other law enforcement authorities, Stuglin said.

Local 412 President Jerry Witt wrote in a letter to members that the union was working to file a bond claim for the losses.

“Due to the severity of the possible misappropriations, I recommend that the Local Executive Board consider contacting the International Union about placing the Local in administratorship to assist the Local’s effort to correct this breach and put the Local on the right path,” Witt wrote.

The Detroit Free Press reported the audit’s findings Wednesday.

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