• Qui Tam
  • SEC
  • CFTC
  • FCPA
  • Whistleblower Resources
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
The Truth at Any Cost.
Qui Tam, Compliance and Anti-Corruption News.
SIGN THE PETITION FOR NATIONAL WHISTLEBLOWER DAY IN 2023
Whistleblower Network News
  • Qui Tam
  • SEC
  • CFTC
  • FCPA
  • Whistleblower Resources
  • FAQS
Subscribe
Donate
No Result
View All Result
Whistleblower Network News
No Result
View All Result
Home Corporate SEC

BMW Settles SEC Charges That It Misled Investors About Retail Sales Numbers

Geoff SchwellerbyGeoff Schweller
November 11, 2020
in Corporate, Dodd-Frank, News, SEC
Reading Time: 3 mins read
SEC BMW
Share on TwitterShare on FacebookShare on LinkedInEmail

On September 24, the U.S. Securities and Exchange Commission (SEC) announced settled charges against German auto-manufacturer BMW and two of its U.S. subsidiaries. The SEC charged BMW with disclosing inaccurate and misleading information about retail sales volume in the U.S. BMW is to pay a civil penalty of $18 million. On October 30, the SEC posted a Notice of Covered Action for the case, signaling that qualified individuals should now apply for a whistleblower award for the case.

According to the SEC, BMW inflated its reported retail sales in the U.S. from 2015 to 2019. By doing so, BMW was allegedly able to reach internal sales targets and publicly maintain a leading retail sales position compared to other premium automotive companies. During this period, BMW raised approximately $18 billion from investors in corporate bonds offerings. According to the SEC, BMW’s inflation of reported sales meant that the information provided to investors during this period contained material misstatements and omissions.

“Companies accessing U.S. markets to raise capital have an obligation to provide accurate information to investors,” said Stephanie Avakian, Director of the SEC’s Division of Enforcement. “Through its repeated disclosure failures, BMW misled investors about its U.S. retail sales performance and customer demand for BMW vehicles in the U.S. market while raising capital in the U.S.”

Support Whistleblower Network News

BMW and its U.S. subsidies neither admitted nor denied the SEC allegations in accepting the settlement. They agreed to pay a joint penalty of $18 million and to cease and desist from future violations of the antifraud provisions of Sections 17(a)(2) and (3) of the Securities Act of 1933. The SEC notes that BMW provided significant cooperation with the investigation in the midst of the COVID-19 pandemic. Their cooperation was taken into account when the SEC imposed the penalty.

“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. “As we continue to vigorously pursue wrongdoing during the COVID-19 pandemic, companies wishing to receive credit should be forthcoming in their approach to cooperation.”

On October 30, the SEC posted a Notice of Covered Action in reference to this case. The Notice of Covered Action signals that individuals who voluntarily provided the SEC with original information regarding this case should now submit a whistleblower award claim. Qualified SEC whistleblowers are entitled to a monetary award of 10-30% of all funds recouped by the SEC in the relevant enforcement actions. In this case a whistleblower award would range from $1.8 million to $5.4 million.

Since issuing its first award in 2012, the SEC has awarded approximately $719 million to 112 individuals. In October, the SEC issued a $114 million whistleblower award – by far the largest in program history. In addition to awards, the SEC Whistleblower Program provides anti-retaliation protections to whistleblowers, including confidentiality.

Read:

SEC Charges BMW for Disclosing Inaccurate and Misleading Retail Sales Information to Bond Investors

Notices of Covered Actions

Tags: Corporate FraudDodd-Frank ActSEC
Previous Post

SEC Office of the Whistleblower Posts Nineteen New Notices of Covered Actions

Next Post

Fiat Chrysler to Pay SEC $9.5 Million Penalty for Disclosure Violations

Geoff Schweller

Geoff Schweller

Geoff Schweller is the Assistant News Editor for Whistleblower Network News. He coordinates news coverage, and also writes about breaking whistleblower news, SEC whistleblowers, IRS whistleblowers, CFTC whistleblowers, and federal employee whistleblowers. Geoff graduated from Hamilton College with a degree in Sociology and minors in French & Francophone Studies and Cinema & New Media Studies.

Next Post
Fiat SEC

Fiat Chrysler to Pay SEC $9.5 Million Penalty for Disclosure Violations

Please login to join discussion

Receive Daily Alerts

Subscribe to receive daily breaking news and legislative developments sent to your inbox.

  • This field is for validation purposes and should be left unchanged.

Most Popular

Change the Culture, Make National Whistleblower Day Permanent

Tell President Biden to “Finish the Job” for Whistleblowers

Whistleblower Advocates See Parallels to Enron in Silicon Valley Bank Collapse

Whistleblower Jóhannes Stefánsson Plans to Testify at Fishrot Trial in Namibia

WNN Exclusive Interview with Social Security Whistleblowers Sarah Carver and Jennifer Griffith — Part 1

Whistleblower Raised Concerns of Rodents, Spiders in Kitchen of Childcare Facility, Then Fired; OSHA Rules They Were Retaliated Against

Whistleblower Poll

Whistleblower Poll
Whistleblower Poll

Exclusive Marist Poll: Overwhelming Public Support Among Likely Voters For Increased Whistleblower Protections

byGeoff Schweller
October 6, 2020

ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

STAY INFORMED.
Subscribe to receive breaking whistleblower updates.

  • This field is for validation purposes and should be left unchanged.

About Us

  • About
  • Contact Us
  • Donate
  • Careers

Subscribe

  • Daily Mail
  • Follow us on Twitter
  • YouTube Channel

Contribute

  • Letter to the Editor
  • Submission Guidelines
  • Reprint Guidelines

Your Experience

  • Accessibility Statement
  • Privacy Policy
  • Terms of Use

Help

  • The Whistleblowers Handbook
  • Frequently Asked Questions
  • Advertise
Whistleblower Network News

Whistleblower Network News is an independent online newspaper providing our readers with up-to-date information on whistleblowing. Our goal is to be the best source of information on important qui tam, anti-corruption, compliance, and whistleblower law developments. 

Submit an Article

Copyright © 2021, Whistleblower Network News. All Rights Reserved.

This Newspaper/Web Site is made available by the publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this website, you understand that there is no attorney-client relationship between you and the Newspaper/Web Site publisher. The Newspaper/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

SIGN THE PETITION FOR NATIONAL WHISTLEBLOWER DAY IN 2023
No Result
View All Result
  • Exclusives
  • Government
    • False Claims-Qui Tam
    • Federal Employees
    • Intelligence
  • Corporate
    • CFTC & Commodities
    • Dodd-Frank
    • IRS & Tax
    • SEC & Securities
  • Features
  • Legislation
  • International
    • Foreign Corruption
  • Rewards
  • Whistleblower of the Week
  • Environment & Climate
  • Opinion
  • Editorial
  • Employment
    • Sarbanes-Oxley Whistleblowers
    • Retaliation
    • OSHA
  • Media
    • Podcasts
    • Videos
    • Webinars
    • National Whistleblower Day
  • Whistleblower Poll
  • Whistleblower Resources
    • Frequently Asked Questions
    • Resources for Locating An Attorney
    • The New Whistleblowers Handbook
  • National Whistleblower Day ’23

Copyright © 2020, Whistleblower Network News. All Rights Reserved.

Become a Whistleblower Network News Subscriber

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Subscribe to WNN

Retrieve your password

Please enter your username or email address to reset your password.

Subscribe to WNN

Add New Playlist

Go to mobile version