DelphiA federal jury has cleared Former Delphi CEO J.T. Battenberg of the most serious allegations levied against him by the Securities and Exchange Commission. The SEC had charged both Battenberg and former Delphi accountant Paul Free with a variety of offenses, the most severe of which were fraud charges associated with misrepresenting a $237 million payment to General Motors. On Thursday, the jury cleared Battenberg of four of the most severe charges, but found him guilty of failing to maintain accurate books or records and misleading his accountants.

Meanwhile, the jury found that Free was guilty of violating rules associated with a smaller transaction that Delphi made with a bank.

The SEC had accused Battenberg of misreporting the payment to General Motors in order to make the company's bottom line appear stronger to investors than it actually was. The move was believed to have been made to secure larger bonuses for the CEO and other executives.

[Source: Reuters]