Feds Investigating FCA for Inflating Sales
Fiat Chrysler Automobiles confirmed Tuesday that it's facing civil and criminal probes into it monthly sales reporting. The announcement comes as the automaker fends off an Illinois dealer group that has accused the company of inflating its numbers.
Fiat Chrysler Automobiles confirmed Tuesday that it's facing civil and criminal probes into it monthly sales reporting. The announcement comes as the automaker fends off an Illinois dealer group that has accused the company of inflating its numbers.
FCA acknowledged Tuesday that it's under investigation by the U.S. Securities and Exchange Commission and the U.S. Department of Justice. FBI agents visited the homes of nine people who run FCA business centers on July 11, reports Bloomberg.
"In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers," FCA said in the statement.
The investigations follow civil lawsuits filed by the Ed Napleton Automotive Group in January that accused the automaker of inflating its sales numbers. Napleton operates 37 dealers in Illinois, Florida, and other states. The Napleton Fleet Group provides vehicles to commercial fleets.
Napleton alleged that a FCA district manager asked him to falsely report 40 vehicles as sold in exchange for a $20,000 payment, reports Bloomberg.
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