Presumably, the fact that "target letters" have been sent to seven ex-Delphi executives by the Securities and Exchange Commission is not a welcome sign for those on the receiving end of that particular communiqué. It's likely that the letters are a step towards civil charges being filed against the individuals for their roles in the accounting scandal that led Delphi to dramatically restate several years of earnings, with an adjustment of over $300M being made to the company's profits prior to its October bankruptcy filing. At this time, it's not clear exactly who is being targeted by the SEC.
The Justice Department may soon be joining the case to toss in some criminal penalties, and several shareholders and retirees have filed their own civil lawsuits against Delphi.
[Source: Detroit News]
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Reader Comments (Page 1 of 1)
steve lumley @ Jun 7th 2006 2:24PM
for anyone who spews pro mangement rhetoric this is what you are defending
Max @ Jun 7th 2006 2:40PM
I was led to believe it was the UAW fault.
gbh @ Jun 7th 2006 3:31PM
Episode 43 of 'How to Destroy a Multi-Billion Dollar Company'.
Today's episode brought to you by Deloitte and Touche, and Arthur Anderson.
Honestly, is anybody *really* shocked by this?
Sgt. Hulka @ Jun 7th 2006 3:56PM
Delphi = Doofus
Richard Warren @ Jun 7th 2006 4:07PM
And you wonder why the UAW does not trust them?
And how were those exec's paid on those earnings?
More management scum, helping destroy an American company. It's OK thought they can all get jobs on the international side of Delphi, that does not have any problems
Aki @ Jun 7th 2006 4:50PM
What's with this false dichotomy? Why does it either have to be UAW or management's fault. It's neither.
They both screwed up. Management for making concessions in forms of health benefits, failing to see in the long run how it would add up. UAW for continually trying to swindle money from company coffers.
Howard Kerr @ Jun 7th 2006 6:03PM
It's unfortunate, but all those folks who thought the UAW didn't know their a$$ from their elbows, would seem to have some ammunition with this. I say SEEM, because it is a case of one more company running into accounting troubles that JUST HAPPEN to benefit management.
John @ Jun 7th 2006 9:06PM
But the optimist would say that higher earnings (even if they were misstated) would result in bigger bonuses for the UAW workers too ...... but then I don't think there are any optimists when you're talking about Delphi.
Tom Design @ Jun 8th 2006 8:33AM
That must have been a bad letter to get. I wonder if they were sent "certified" and the guys had to go their local post office to sign. That's always bad news, and would have been a great pic to have a snap of. The fancy car, the "Polo" shirts, the 200 sunglasses, and a big "DAYUM" when they get handed the letter by the little plugger at the post office.
I can't believe people think giving health benefits to UAW workers is a bad thing. What is wrong with you people? Whenever a union takes a benefit, a quarter hour break increase, an extra day in sick time, $10 more for dental care coverage, they are NOT getting pay. It's a management game to not increase wages over the 1-3% cost of living that everyone gets in the U.S. So instead of money, year after year, the management/company screws the worker out of cash, and plugs some lower valued fringe benefit into the formula. The UAW would love to have salary in lieu of these benefits as long as the salary could pay for the health care. But this country is screwed up and health care costs would cripple any working family if paid out of pocket. So the UAW took these concessions to pay, and hopefully protected their worker in another area, high cost of health. How is this a screw up? What is wrong with people who don't want their neighbor to have family health coverage, just a selfish, unfair outlook. The reason the Japanese don't have this cost to deal with is because the government provides health care! And the medical industry isn't out of control along with the pharmaceutical giants like in the U.S. It's amazing I saw a T.V. special that said to treat a person with 4 pills a day for HIV in the U.S. costs $15,000/year. There's something very wrong here. And if the UAW can get 10,000's of americans to the doctor, god bless them!
Now, back to the execs...let them hang as an example to other greed driven men at the top. I think there are probably bad people in management at UAW also, but not the workers.