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Feds Investigating FCA for Inflating Sales, Automaker Confirms

July 19, 2016

AUBURN HILLS, Mich. — On Tuesday, Fiat Chrysler Automobile U.S. confirmed that it is facing civil and criminal probes into it monthly sales reporting. The announcement comes as the automaker fends off an Illinois dealer group that has accused the company of inflating its numbers.

FCA U.S. officials acknowledged that it's under investigation by the U.S. Securities and Exchange Commission and the U.S. Department of Justice. On July 11, FBI agents visited the homes of nine people who run FCA business centers, according to a Bloomberg report.

"In its annual and quarterly financial statements, FCA records revenues based on shipments to dealers and customers and not on reported vehicle unit sales to end customers," FCA said in the statement posted on its website.

The investigations follow civil lawsuits filed by the Ed Napleton Automotive Group in January that accuses the automaker of inflating its sales numbers. Napleton operates 37 dealerships in Illinois, Florida, and other states.

Napleton alleged that a FCA district manager asked the dealer to falsely report 40 vehicles as sold in exchange for a $20,000 payment, reports Bloomberg.

To read Bloomberg's full report, click here.

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