Former CEO of Power Solutions International indicted for fraud

[nitpicker]

https://www.chicagobusiness.com/manufacturing/former-ceo-power-solutions-international-indicted-fraud

July 19, 2019 01:55 PM |updated 14 hours ago

Former CEO of Power Solutions International indicted for fraud

The U.S. Attorney's Office has indicted the former chief executive at suburban engine-maker Power Solutions International for fraud, while securities regulators say the company overstated earnings by almost $25 million.

Former CEO Gary Winemaster, 61, along with the company’s former vice president of sales and general manager for heavy-duty products "fraudulently inflated PSI’s revenue in order to try to meet PSI’s prior revenue guidance and analysts’ revenue expectations," according to a lawsuit filed by the Securities & Exchange Commission. "PSI issued materially misstated financial statements in its public filings for every period from the fourth quarter of 2014 through the fourth quarter of 2015."

Winemaster, Davis and Needham are each being indicted with one count of securities fraud and 10 counts of wire fraud, according to an indictment unsealed Thursday at federal court in Chicago. Winemaster also was indicted on making false statements to an auditor and failing to certify financial reports.
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[nitpicker]

1. Link to the DoJ PR

https://www.justice.gov/usao-ndil/pr/former-ceo-publicly-traded-manufacturer-charged-fraud-allegedly-misrepresenting-company

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According to the indictment, the defendants schemed to defraud shareholders and other investors in connection with the company’s common stock, which was listed on the Nasdaq Stock Market. The defendants concealed material information about special terms of sales to customers, causing the company’s accounting department to recognize inflated revenue figures for those transactions, the indictment states. Winemaster and Davis also authorized shipments of products to customers who had not agreed to accept delivery, the indictment states. The shipments falsely supported the accounting department’s treatment of the transactions as final sales, thus fraudulently causing the company to book revenue from the deals, the charges allege.
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