According to the Detroit Free Press
, the Securities and Exchange Commission
has accused former Delphi
CEO J.T. Battenberg III of intentionally working to hide his company's financial situation from investors. On Tuesday, an SEC lawyer told the jury in Battenberg's trial that the ex-Delphi boss made the company's financial numbers look better than they were in order to secure larger bonuses. The SEC sued both Battenberg and Paul Free, the former Chief Accounting Officer for Delphi, and several other former executives in 2006 for fraudulent accounting. Delphi entered into bankruptcy protection in 2005.
U.S. District Judge Avern Cohn began hearing the evidence against Battenberg, Free and other executives in October, and closing arguments in the case wrapped up on Tuesday. So far, two executives and the company's former treasurer have agreed to settle with the SEC over allegations that Delphi improperly reported a settlement that the company made with General Motors
. Both Battenberg and Free remain as defendants in the case.
[Source: Detroit Free Press