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Last updated on Friday, April 17, 2009
(UNDATED) - The Indiana Secretary of State’s securities division is filing a fraud complaint against Chrysler.
Secretary of State Todd Rokita says the violation stems from a bond purchase agreement between Chrysler, Getrag Transmission Manufacturing, and Tipton County.
The complaint alleges that Chrysler committed civil securities fraud by failing to inform Tipton County of the lack of a complete agreement between Chrysler and Getrag in their joint venture to build a transmission plant.
The complaint contends Tipton County issued millions of dollars in bonds to finance infrastructure improvements to support the planned Getrag Transmission plant. The day after the bonds were issued, Chrysler disclosed it could not make guarantees to Getrag necessary for the German company to secure funding for the project.
Two months later, Getrag filed for bankruptcy and stopped construction. The facility remains half-built and abandoned in Tipton County at US-31 and IN-28. The complaint could result in Chrysler paying millions of dollars in fines and restitution to the state and Tipton County.
Chrysler has 15 days to respond to the complaint.
An administrative judge will hold a hearing on the order June 24th.
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