Report: Delphi withheld documents from its accounting firm

Article by Christian A., on November 21, 2010

Former Delphi Corp. CEO J.T. Battenberg III is facing a civil securities-fraud case filed by Securities and Exchange Commission. Nicholas Difazio, General Motors' former outside auditor testified that, in 2000, Delphi management withheld documents from its accounting firm that might have raised red flags about how the Company booked a $237 million payment to GM.

The SEC says the money was to compensate GM for faulty parts. However, Delphi avoid an earnings hit by improperly booking it mostly as employee-benefit expenses and pension.

SEC attorneys recently showed Difazio, now a Deloitte & Touche partner, an itemized list of faulty parts totaling $240 million that Delphi owed GM at the time.

SEC says Delphi's $237 million payment to GM was to cover bad parts, but Delphi listed $202 million as a payment for benefit obligations and pension.

Difazio said that he thought the accounting treatment was correct in 2000. In cross-examining Difazio, defense attorney tried to discredit SEC's arguments that Delphi's settlement with GM had little to do with employee-benefits payments or pension. [via autonews - sub. required]

Topics: delphi

If you liked the article, share on:

Comments

Recommended

It seems like an increase in price has become a trend for automotive companies lately. Genesis isn’t alone when it comes to this. Subaru had just announced that the 2018...
by - April 23, 2017
Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
It is not a big secret that premium customers in China have a strong penchant for luxury cars with a spacious interior. In particular, premium customers in China purchase luxury...
by - April 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