Former Delphi Corp. Chief Executive Officer J. T. Battenberg III must pay a $215,000 for violating U.S. securities laws by misrepresenting a $237 million payment to General Motors Corp.
U.S. District Judge Avern Cohn entered judgment against Battenberg and a $118,500 sanction against former top Delphi accountant Paul Free. A Detroit jury in January found the men misrepresented the GM payment and found Free committed wrong-doing in three other transactions in 2000 and 2001.
The executives had been accused of trying to prop up the giant auto supplier’s stock even as Delphi slid steadily towards what would become the longest corporate bankruptcy reorganization in U.S. history.
“The remedies are for the court to decide,” Cohn said in separate memoranda explaining his rationale for each assessment.