The Securities and Exchange Commission settled charges against BMW Automotive Group and two of its U.S. subsidiaries after investigating BMW’s role in over-reporting its U.S. retail sales for a period of four years from 2015 to 2019. The settlement requires BMW and its subsidiaries to jointly pay an $18 million dollar penalty.
This is a small amount in comparison to the $18 billion it raised from investors during that time period. The SEC alleges that while retail sales were being over-reported, BMW was able to raise $18 billion from investors through corporate bond offerings, an amount that is dependent upon showing proof of meeting sales targets. The inflation of retail sales could then have inflated the value of BMW’s corporate bonds.
The comparatively small penalty was partly a result of BMW’s commitment to cooperation with the SEC’s investigation.
“This settlement illustrates the significant benefits to companies for providing concrete cooperation that substantially advances the quality and efficiency of our investigations once contacted by agency staff,” said Anita B. Bandy, an Associate Director in the Division of Enforcement at the SEC.
BMW’s transparency and cooperation throughout the investigation has shown the value in having a competent legal defense when being investigated by regulators.
Understanding when and how cooperation with authorities can help mitigate legal repercussions is a valuable skill set which a competent attorney like Padula Law can bring to your legal defense.
