Fiat Chrysler Is Fined $40 Million for Sales-Reporting Fraud
- SEC says carmaker paid dealers to inflate monthly figures
- Staff maintained database of actual-but-unreported deliveries
A row of Fiat Chrysler automobiles.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Fiat Chrysler Automobiles NV agreed to pay a $40 million penalty related to years of sales reports the U.S. Securities and Exchange Commission said were fraudulent.
The Italian-American automaker issued statements that misled investors by wrongly claiming a years-long streak of monthly gains, the SEC said Friday. Fiat Chrysler inflated results by paying dealers to report fake sales. The company also maintained a database of actual-but-unreported figures that employees could tap into to falsely post continued growth, according to the regulator.