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Contact: Jim Gavin
Indiana Secretary of State Todd Rokita announces complaint filed by his Indiana Securities Division in investigation of Chrysler's bond purchase agreement with Tipton County
(Indianapolis) – Indiana Secretary of State Todd Rokita announced today that an investigation by his Indiana Securities Division has resulted in the filing of an administrative complaint and allegations of Indiana Securities Act violations against Chrysler, LLC. The complaint, which is attached to this release, details the events surrounding a Bond Purchase Agreement between Chrysler, Getrag Transmission Manufacturing, and Tipton County.
"Indiana has a long automotive manufacturing heritage, and we need to preserve it," said Secretary Rokita. "But we also need to ensure a level playing field within all industries, and that includes protecting victims whether they are individuals or groups like the taxpayers in Tipton County."
According to the complaint, in September of 2008, millions of dollars in bonds were issued by Tipton County to finance infrastructure improvements necessary to support a new transmission plant owned and operated by Getrag. 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. In November of 2008, Getrag filed for Chapter 11 bankruptcy protection.
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 the dual clutch transmission plant.
The complaint is filed with the Indiana Securities Commissioner and could result in a fine and/or an order of restitution to Tipton County, possibly totaling several million dollars.
Media Contact: Jim Gavin: 317.233.8655 or firstname.lastname@example.org.