Indicted UAW union bosses pumped $1 million into valley resorts, restaurants, golf courses, and cigar shop

Palm Springs featured heavily in a federal criminal complained unveiled Thursday alleging that top United Auto Workers officials, both former and current, had misspent worker dues on lavish travel, meals, lodging and entertainment. 

Federal law enforcement officials charged UAW Region 5 Director Vance Pearson, whose area includes California, as well as other unnamed UAW officials, including one believed to be current UAW President Gary Jones. Authorities described a years-long criminal conspiracy to conceal a litany of illegal spending in the Missouri Ozarks, as well as in Coronado, California. 

The complaint outlined in granular detail the spending by several UAW individuals in Palm Springs, pumping more than $1 million into the local economy — albeit through means deemed illegal by federal authorities. 

The spending in Palm Springs, which UAW officials had maintained was related to conferences they were attending, first tipped off federal investigators, The Detroit News first reported last year.

Here's a breakdown of the alleged illegal spending, which totaled more than $1 million between 2014 and 2018. Most of the spending was paid to the Renaissance Palm Springs Hotel, which had arrangements with officials to charge spending made at local businesses to the master account the UAW officials had set up. 

Where the $1 million went

Between 2014 and 2017, the complaint alleges that Pearson, as well as unnamed UAW officials "A" and "C" had made underlying billing arrangements for a number of payments made to restaurants, golf resorts and a cigar shop. They included LG Prime Steak House, which has two locations in the Coachella Valley, and Johnny Costa's Ristorante in Palm Springs. 

$400,000 on long-term rentals

Between 2015 and 2017, Pearson and unnamed UAW officials "A," "B," "C" and "D" are alleged to have paid for long-term villa rentals that were intended for multi-day conferences. But authorities said they stayed for weeks at a time. One 67-day stay at a Cathedral City villa from December 2015 to February 2016 cost $11,000.

Another official's 105-day stay in a nearby villa cost $15,000.

$60,000 on extravagant dinners

A New Years Eve dinner at LG Prime Steak House cost $6,600, and included an $1,100 tip. The dinner also included $1,942 in liquor and $1,440 in wine. Four bottles of Cristal champagne alone cost $1,760.

Just two days before, officials had dined at Jonny Costa's Ristorante, spending more than $2,000 on two different nights during that holiday period. A third dinner on Jan. 5, 2017 cost $4,827.

$80,000 on golf fees, merchandise

The Indian Canyons Golf Resort hosted UAW officials for more than 100 18-hole rounds of golf, with greens fees totaling nearly $20,000. UAW officials also made big purchases at the resort's retail store, including $3,000 in December 2014 on clothes and accessories. 

$60,000 on cigars, other tobacco products

Palm Springs' The Tinder Box was a favorite place for UAW officials, according to the complaint. Between 2014 and 2018, officials bought a few thousands dollars worth of cigars, stainless steel table cutters, and humidors. 

The Detroit News did a deep dive into the charges. It notes that Jones headed the UAW unit that included California until he was elected president in 2018. 

In a prepared statement, the UAW told The News that "while these allegations are very concerning, we strongly believe that the government has misconstrued any number of facts and emphasize that these are merely allegations, not proof of wrongdoing. Our highest priority is maintaining the trust and confidence of United Auto Workers members."

Ricardo Lopez covers the eastern Coachella Valley cities of Indio and Coachella. Reach him at Ricardo.Lopez@DesertSun.com or 760-778-4637.