The U.S. Securities and Exchange Commission (SEC) is filing civil fraud claims against former executives of struggling Delphi Corp. for accounting improprieties, according to the Wall Street Journal.
The agency is filing the claims against J.T. Battenberg III, the former chairman and chief executive of Delphi, and Alan Dawes, former chief financial officer of the company, according to the WSJ.
The report added that other former Delphi executives will also face civil claims.
Battenberg and Dawes left the company last year, shortly before Delphi said its audit investigation revealed that the company had overstated both cash flow and pretax income.
In June 2005, Delphi restated several years of earnings because of the improper transactions, including cash dealings with General Motors Corp., its former parent company.
On Thursday, the SEC's five-member commission voted unanimously to approve a settlement with the company on the allegations of accounting improprieties, according to the WSJ.
Because of Delphi's financial problems, 12,400 of the company's employees agreed to retire, and 1,400 accepted a buyout offer. About 1,000 jobs were eliminated in Oak Creek, where the company has since hired hundreds of workers for considerably lower wages and fewer benefits.
SEC to file claims against former Delphi executives
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