Power Solutions Settles With SEC, Avoids DOJ Criminal Charges

Sept. 24, 2020, 10:46 PM

A Chicago-area engine manufacturing company has agreed to pay $1.7 million to settle SEC charges that it overstated revenue for products that customers didn’t want or weren’t yet finished.

Power Solutions International Inc. inflated revenues by nearly $25 million and materially misstated its financial statements from 2014 to 2015 in order to meet revenue targets and analyst forecasts, according to the settlement the Securities and Exchange Commission announced Thursday.

The company had undisclosed contingency arrangements that included product returns, special financing, and payment terms. In one “bill and hold” transaction, the company extended payment terms to encourage ...

To read the full article log in. To learn more about a subscription click here.