Fiat Chrysler Cooperating With Investigation on False Sales
DETROIT (AP) -
Federal prosecutors are investigating allegations that Fiat Chrysler violated securities laws by getting dealers to falsely report sales in order to inflate the company's numbers.
The company says in a statement that it's cooperating with an investigation by the Securities and Exchange Commission and that it has received similar inquiries from the Justice Department.
The probe apparently stems from a lawsuit filed in January by the Illinois-based Napleton dealership group alleging that competing dealers were given thousands of dollars to report false sales. The group alleges that an FCA executive offered Napleton $20,000 to falsely report sales of 40 new vehicles.
The lawsuit also alleges that the false sales give the appearance that FCA's performance is better than it actually is.