• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Fiat Chrysler Automobiles

Why Federal Prosecutors and the SEC Are Investigating Fiat Chrysler

By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
By
Kirsten Korosec
Kirsten Korosec
Down Arrow Button Icon
July 18, 2016, 2:39 PM ET
Photograph by John Keeble Getty Images

U.S. Department of Justice prosecutors are investigating Fiat Chrysler Automobiles for fraud, six months after a major Illinois auto dealer sued the automaker in federal court for manipulating and inflating its sales in the United States.

The DOJ is looking at whether the automaker violated securities fraud, Bloomberg first reported on Monday. The FBI and the Securities and Exchange Commission have also launched a coordinated probe into the company’s sales practices and have already sent investigators to the homes and offices of current and former FCA employees, according to Automotive News.

Michael Palese, a spokesman for Fiat Chrysler confirmed in an email that the company is cooperating with an SEC investigation into the reporting of vehicle unit sales in the U.S. He also confirmed that the DOJ has made inquiries into “similar issues,” without elaborating. The Auburn Hills, Michigan-based automaker will cooperate with these investigations, he said.

Palese added that Fiat Chrysler records revenues based on shipments to dealers and customers—not reported vehicle unit sales—in its annual and quarterly financial statements.

Self-driving cars are blowing up the auto industry:

Unnamed sources told Bloomberg that DOJ prosecutors are in the early stages of their investigation without providing more detail into any specific allegations.

The Napleton Automotive Group, which has Chrysler-Dodge-Jeep-Ram dealerships in Illinois and Florida, sued FCA in January for civil racketeering. The lawsuit accused the automaker of encouraging dealers with financial incentives to submit false vehicle-sales reports. A similar lawsuit was filed against FCA in 2015 by a Maserati dealer.

Get Data Sheet, Fortune’s technology newsletter.

The world’s seventh-largest carmaker has reported sales growth for 75 consecutive months. Earlier this month, FCA reported a 6.5% increase in sales in the first six months of 2016 compared to the same period last year. In 2015, FCA reported it sold more than 2.2 million vehicles, up 7% from 2014 and its best annual U.S. sales since 2005.

About the Author
By Kirsten Korosec
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

HealthDietary Supplements
Seed Probiotic Review (2026): Expert Tested and Approved
By Christina SnyderMarch 26, 2026
3 minutes ago
chaplin
AIAI agents
‘Intelligence may be scalable, but accountability is not’: A new report exposes the hidden cost of the AI agent revolution
By Nick LichtenbergMarch 26, 2026
4 minutes ago
Arts & EntertainmentNCAA March Madness
How to watch the Sweet 16 and the Elite 8 of March Madness 2026 for free—and without cable
By Sydney LakeMarch 26, 2026
4 minutes ago
wyle
HealthTV
‘The Pitt’ shows an ER getting shut down by a cyberattack that is totally true to life
By Jeffrey Tully, Christian Dameff and The ConversationMarch 26, 2026
34 minutes ago
Personal Financegold prices
Current price of gold as of March 26, 2026
By Danny BakstMarch 26, 2026
43 minutes ago
Top CD rates from major banks March 26, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
Personal FinanceCertificates of Deposit (CDs)
Top CD rates from major banks on March 26, 2026: Chase CDs, Bank of America CDs, Citibank CDs, and more
By Joseph HostetlerMarch 26, 2026
44 minutes ago

Most Popular

Success
Palantir’s billionaire CEO says only two kinds of people will succeed in the AI era: trade workers — ‘or you’re neurodivergent’
By Fortune EditorsMarch 24, 2026
2 days ago
Magazine
The youngest-ever female CEO of a Fortune 500 company is fighting Trump's cuts to keep Medicaid strong
By Fortune EditorsMarch 24, 2026
2 days ago
Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
3 days ago
C-Suite
'I didn’t want anybody shooting me': Five Guys CEO gave away $1.5 million bonus to employees over botched BOGO burger birthday celebration
By Fortune EditorsMarch 25, 2026
18 hours ago
Success
JPMorgan’s Jamie Dimon says remote work breeds ‘rope-a-dope politics’ and stunts young workers’ growth
By Fortune EditorsMarch 25, 2026
23 hours ago
Success
The job market is so bad that ‘reverse recruiters’ are charging $1,500 a month just to help people look for jobs
By Fortune EditorsMarch 25, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.