Former Delphi CEO Battenberg must pay a $215,000 penalty for violating U.S. securities laws

Article by Christian A., on November 2, 2011

U.S. District Judge Avern Cohn in Detroit ordered Tuesday that J. T. Battenberg III, a former chief executive officer at Delphi Corp., has to pay $215,000 in penalty charges for violating U.S. securities laws by misrepresenting a $237 million payment to General Motors Co.

He also gave a $118,500 sanction against Paul Free, former top Delphi accountant. In January, a jury in Detroit found the men misrepresented the GM payment and found that Free committed wrong-doing in three other transactions in 2000 and 2001.

The U.S. Securities and Exchange Commission sued these executives in 2006. While the jury found that they had misrepresented the GM payment, it cleared them of claims that they committed fraud or helped Delphi violate securities laws in the transaction. In separate memoranda detailing his rationale for each assessment, Cohn explained that the remedies are for the court to decide.

Delphi, which was once the biggest vehicle components supplier in the United States, filed for bankruptcy protection after not being able to win wage cuts and financial assistance from GM, its former corporate parent. In 2009, Delphi emerged from bankruptcy court protection.

During the trial, the attorneys for Battenberg and Free asserted that there was no attempt to mislead investors. The attorneys also stated that the executives did not commit fraud, for which the jury had concurred. Battenberg's lawyer, William Jeffress and Free's lawyer, Matthew Lund, has yet to comment on this report. [source: Autonews]

Topics: delphi, ceo

If you liked the article, share on:

Comments

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries