According to the sentence pronounced by U.S. District Judge in Detroit, two of Delphi’s former executives. J.T. Battenberg (ex-CEO) and Paul Free (ex-top accountant), must pay $215,000 and respectively $118,500 as sanction for misrepresenting $237 million warrant payment to General Motors Corp.
The men were sued in 2006 by U.S. Securities and Exchange Commission. Their attorneys argued that their clients were not attempting to misled the investors. In January, a Detroit jury cleared the men of the fraud charge, but stated that according to U.S. securities laws they are responsible for bookkeeping mistakes and misrepresentation. Separately charged, Free has been found of committed wrong-doing in three other transactions in 2000 and 2001.
Delphi Automotive LLP was once the biggest U.S. automotive parts supplier, with more than 146,600 employees worldwide and operating in 150 own manufacturing sites. In 2009, the company filled for bankruptcy after it was unable to reduce salaries and to benefit for GM’s financial assistance, its former corporate parent.