Suburban manufacturing company fined $1.7 million by SEC for inflating stock value

Suburban manufacturing company fined $1.7 million by SEC for inflating stock value
Building icon and inscription SEC. Financial data on background. Photo credit Getty Images

WOOD DALE, Ill. (WBBM NEWSRADIO) -- A suburban manufacturing company in Wood Dale has been fined $1.7 million by the Securities and Exchange Commission for allegedly inflating its stock value by $25 million.

The fine against Power Solutions International Inc. comes after the company already agreed to pay $8.5 million to settle class action lawsuits brought by shareholders related to the matter, according to the U.S. Attorney’s Office in Chicago.

The company allegedly recorded sales to its ledgers that never actually happened, federal prosecutors said when they charged the company’s CEO Gary Winemaster in 2019 with several financial crimes.

Power Solutions International Inc. has entered into a non-prosecution agreement with the U.S. Attorney’s Office in Chicago.

(Source: Sun-Times Media Wire & Chicago Sun-Times 2020. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)