BMW Will pay a $ 18 million fine to settle allegations that it raised its monthly U.S. sales numbers for five months.
The Securities and Exchange Commission The German luxury automaker said on Thursday it has unregistered sales balance to achieve monthly targets from 2015 to 2019.
The company claims that BMW leaked false information while raising about $ 18 billion in several corporate securities.
“Companies approaching US markets to raise capital have an obligation to provide accurate information to investors,” said Stephanie Avagien, SEC’s director of enforcement.
The company said the move helped BMW maintain a leading retail position among other luxury vehicle manufacturers.
According to the SEC, BMW of North America adjusted its sales report calendar to meet internal targets in 2015 and 2017, or the bank incorrectly adjusted additional sales. The balance of unregistered sales is referred to locally as “banking”. BMW paid dealers to hire vehicles as demonstrators or debtors, so the SEC said they would be considered for sale.
The SEC said BMW was cooperating with its investigation into the Corona virus outbreak, which closed offices and forced workers to stay home. The company said cooperation was taken into account when the fine was imposed.
BMW AG, BMW North America and BMW US Capital do not acknowledge or deny the company’s findings. The trio agreed to pay the fine and stop violating the bond laws.
In a statement, he said the BMW behavior happened three years ago and that it was due to negligence. “There is no allegation or finding that any BMW company was intentionally involved in misconduct,” the company said. “The BMW Group places great emphasis on the accuracy of its sales figures and will continue to focus on a complete and consistent sales report.”
BMW is the second automaker to face fines for raising sales figures. Last year Fiat Chrysler agreed to pay $ 40 million to settle an SEC complaint, accusing the company of misleading investors by increasing its monthly numbers over a five-month period. From 2012 to 2016 the company boosted sales by paying vendors to report fake numbers, the SEC alleged in a complaint.