U.S. District Court Appoints Neil Barofsky to be the Independent Monitor Over the United Auto Workers Union
DETROIT– Acting United States Attorney Saima S. Mohsin announced that U.S. District Judge David Lawson has issued an order today appointing Neil Barofsky to be the Independent Monitor over the United Auto Workers Union (UAW) pursuant to the terms of the Consent Decree entered by the Court.
U.S. District Judge Lawson has previously entered a Consent Decree following the filing by the United States of an anti-corruption and anti-fraud civil lawsuit against the UAW in federal district court seeking equitable relief to bring about reform and oversight of the union. Under the Consent Decree, the United States proposed attorney Neil Barofsky to act as the Independent Monitor providing oversight of the UAW for a period of six years. The Monitor has the power to oversee the operations of the UAW, to investigate possible fraud or corruption within the union, and to impose discipline on UAW officers and members before an Independent Adjudications Officer also appointed by the Court. The Monitor will oversee, in conjunction with the Department of Labor, a binding and secret-ballot referendum of the UAW’s membership to determine whether to change the UAW’s election method from the current delegate system to a direct election model, also known as “one member, one vote,” where the entire UAW membership could vote for the UAW President and the other members of the UAW’s International Executive Board. The referendum will take place within six months of today.
Neil Barofsky is a partner at the law firm of Jenner & Block, where he leads the firm’s monitorship practice. Mr. Barofsky was a federal prosecutor for thirteen years in the Southern District of New York. Mr. Barofsky was also appointed and served as the Special Inspector General for the Troubled Asset Relief Program, an anti-fraud investigative agency that Mr. Barofsky built from scratch. In addition, Mr. Barofsky has previously served as the Independent Monitor of Credit Suisse Securities LLC and Credit Suisse AG, following billion dollar settlements. Mr. Barofsky’s team includes Jenner & Block partner Reid J. Schar, who previously served as a federal prosecutor in Chicago, where he prosecuted former Illinois Governor Rod Blagojevich. Mr. Barofsky will also be assisted by Glen McGorty, a partner in the law firm of Crowell & Moring and a former federal prosecutor. Mr. McGorty has served as the Independent Monitor overseeing the New York City District Council of Carpenters labor union, which included oversight of direct union elections.
“The men and women of the UAW deserve honest and faithful leaders dedicated to serving the best interests of the membership,” said Acting U.S. Attorney Mohsin. “We believe that oversight by an Independent Monitor will help to ensure that the rights and interests of the UAW’s membership are protected. I am confident that Neil Barofsky will provide tough but fair oversight of the UAW.”