The Securities and Exchange Commission on Monday said the former CEO of Illinois-based Navistar International Corp. will pay $500,000 to resolve charges of misleading investors.
This story by Chris Prentice appeared in Automotive News.
The SEC charged Daniel Ustian and Navistar in 2016 with misleading investors about Navistar’s development of an advanced technology truck engine that could satisfy U.S. pollution standards, the regulator said. Navistar International agreed in 2016 to pay a $7.5 million fine for the charges.
The case arose from Navistar’s failure to win EPA approval of a heavy-duty diesel truck engine designed to meet Clean Air Act standards adopted in 2010.
A lawyer for the former Navistar executive did not respond immediately to a request for comment.
Without admitting or denying the charges, Ustian agreed to give up $250,000 in ill-gotten gains and pay another $250,000 as a penalty, the SEC said in a statement. The commission’s order also prohibits Ustian from violating the antifraud provisions of securities laws.
A court will later decide whether to bar Ustian from serving as an officer or director of a publicly traded company, the regulator said.