WASHINGTON - The U.S. Securities and Exchange Commission has sent target letters to at least seven former Delphi Corp. senior officials executives, a sign that the regulatory body's investigation into accounting fraud at the auto supplier is gaining steam.
The letters notify prospective defendants of the substance of charges that commission investigators plan to recommend to the commission.
Six Delphi executives - including the vice chairman and chief financial officer, the treasurer, and a vice president for treasury, mergers and acquisitions - were forced to leave the company in the aftermath of the accounting probe. At least some of those officials are believed to have received the target letters.
Meanwhile, the judge in the company's bankruptcy case postponed until Friday a hearing scheduled for yesterday on whether Delphi can void its union contracts. John Butler, Jr., lead attorney for Delphi, said bargaining between the company and its unions had intensified because of the postponement.