DETROIT -- The federal civil securities-fraud case of former Delphi Corp. CEO J.T. Battenberg III is headed for a jury trial in Detroit next week.
In a 2006 complaint, the Securities and Exchange Commission alleged that Battenberg and three other former Delphi executives engaged in "fraudulent conduct" from 2000 to 2004 to inflate Delphi's earnings and cash position.
Jury selection is scheduled to start Oct. 19 in the Detroit courtroom of U.S. District Judge Avern Cohn. Battenberg will be on trial along with Paul Free, former Delphi controller and chief accounting officer; Milan Belans, former director of capital planning and pension analysis; and Catherine Rozanski, former accounting director.
The former executives have said that no attempts were made to mislead investors and that they weren't involved in fraud.
Another former Delphi executive settled his case with the SEC last month. John Blahnik, a former treasurer, agreed to pay a $100,000 civil penalty without admitting the SEC's allegations. He had been scheduled to go on trial along with the others.
The SEC alleges that the executives "engaged in a wide-ranging fraudulent scheme" to inflate share prices by issuing misleading earnings statements. Battenberg was responsible for the company materially misstating its financial condition, the SEC alleged.
The parts supplier restated its earnings from 2000 to 2004 and settled with the SEC in 2006 without admitting any wrongdoing.
Delphi, which was spun out of General Motors in 1999, ended up in Chapter 11 in October 2005. It emerged four years later.