Engine Manufacturing Company to Pay Penalty, Take Remedial Measures to Settle Charges of Accounting Fraud

The Securities and Exchange Commission today announced that Chicago-area engine manufacturing company Power Solutions International Inc., has agreed to settle accounting fraud charges related to the company's overstatement of revenues by almost $25 million. According to the SEC's order, Power Solutions fraudulently recorded revenue in several circumstances that were not in accordance with U.S. generally accepted accounting principles. For example, the order finds that Power Solutions recorded revenue for purported sales of products that were not complete, for products that the customer had not agreed to accept, for products for which the price was falsely inflated, and for improper "bill and hold" arrangements.