Feds could take control of the UAW: Report

'All options are on the table,' said U.S. Attorney General Matthew Schneider

The federal government could take control of the United Auto Workers union, according to U.S. Attorney General Matthew Schneider.

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The federal government is investigating financial dealings between union President Rory Gamble, the union's former Vice President Jimmy Settles and one of its highest-paid vendors, the Detroit News reported. Schneider told the Detroit Free Press that takeover was one possibility as the investigation into the union continues.

"All options are on the table," Schneider said. "And [a takeover] is one of the options."

The U.S. attorney said that criminal cases against union members must still be pursued, Schneider told the Free Press. The federal government would be in a better position to consider taking over the union once the criminal probe has advanced further, but the investigation is far from over, he said.

Schneider did not respond to FOX Business' request for comment.


The Free Press clarified that Gamble is not a target in the investigation in question, which UAW spokesman Brian Rothenberg confirmed with FOX Business.

Gamble responded to reports of the investigation late Tuesday.

"I would not have accepted the role of president if I couldn't withstand the scrutiny," Gamble said in a statement. "Our union has suffered enough as a result of corrupt leaders. On my watch, we cannot and will not allow financial improprieties to rob our members of their hard-earned dollars. My sole focus as President is to strengthen the union's financial controls, oversight and accounting system — and most importantly, to restore the trust of our union members."

A UAW flag flies near strikers outside the General Motors Orion Assembly plant in Orion Township, Mich. (AP Photo/Paul Sancya, File)

The investigation is looking into whether UAW leaders got any kind of payment in exchange for awarding contracts for union-branded goods to Jason Gordon, according to the report, which cited two anonymous sources.

Gamble, 64, was appointed president in December after Gary Jones resigned in November over allegedly falsified expense reports. Before reaching the top of the union, Gamble was a regional director, then took over from Settles as vice president.

Gordon hasn't been charged with any wrongdoing, and his lawyer Christopher Andreoff told The Detroit News that Gordon "vehemently denies all of the allegations as being untrue."


"At the [UAW-Ford National Programs Center] President Gamble instituted a strict three-bid process for any purchases above $5,000 when he became Vice President," UAW spokesman Brian Rothenberg previously told FOX Business. "If Mr. Gordon got any business at the NPC during that time, it would have been because he won a bid."

The union pushed back against The Detroit News' report that UAW officials took secret cash payments at a Detroit strip club called Bouzouki Greektown.

"President Gamble can say he never took one red cent personally from Mr. Gordon or directly solicited anything from Mr. Gordon," Rothenberg said. "And President Gamble has never been to that establishment with Mr. Gordon. It simply is not true and never happened."

Gordon hasn't been charged with any wrongdoing, and his lawyer Christopher Andreoff told The Detroit News that Gordon "vehemently denies all of the allegations as being untrue."


Evie Fordham contributed to this report.