Fiat Chrysler Automobiles Under Investigation for Fraud
Bloomberg is reporting Fiat Chrysler Automobiles is under investigation for fraud, according to two anonymous sources who spoke with the publication. Apparently, the automaker is under investigation possibly violating US securities law. The Federal Bureau of Investigation and Securities, Exchange Commission and Department of Justice, who are investigating FCA, visited staff at their homes and offices, according to sources that spoke with Automotive News.
In December 2015, FCA reported its best sales month ever, selling 212,527 vehicles, according to Bloomberg. Previously, Automotive News reported a dealer group in Chicago filed suit against FCA accusing it of paying dealers to fake new-vehicle sales. FCA denied the allegations.
In a statement regarding the investigation, FCA said it records “revenues based on shipments to dealers and customers, not on reported vehicle unit sales to end customers.”
Not only did investigators visit the company’s US headquarter in Auburn Hills, Mich., on July 11, but it also visited the homes of some of the automaker’s field staff. Offices in Dallas, Orland and California, were also visited.