DETROIT (WXYZ) — FCA has pleaded guilty to one count of conspiracy to defraud the United States, commit wire fraud, and violate the Clean Air Act.
Department of Justice officials say, FCA defrauded U.S. regulators and customers by making false and misleading representations about the "design, calibration, and function of the emissions control systems" on more than 100,000 model year 2014, 2015, and 2016 Jeep Grand Cherokee and Ram 1500 diesel vehicles.
The automaker has agreed to pay approximately $300 million in criminal penalties.
“FCA US engaged in a multi-year scheme to mislead U.S. regulators and customers,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s guilty plea demonstrates the department’s dedication to prosecuting all types of corporate malfeasance and holding accountable companies that seek to place profits above candor, good corporate governance, and timely remediation.”
Under the terms of the plea deal, which is still subject to court approval, FCA US will continue to cooperate with the Department of Justice in any ongoing or future criminal investigations and continue to implement a compliance and ethics program designed to both, prevent and detect fraudulent conduct throughout its operations. FCA will also report to the DOJ regarding remediation, implementation, and testing of its compliance program and internal controls.
The government reached this agreement with FCA US based on several factors including, the nature and seriousness of the offense conduct, FCA's failure to voluntarily and timely disclose the conduct that triggered the investigation, and its failure to conduct sufficiently timely or appropriate remedial action. FCA received credit for cooperation with the DOJ's investigation.
Sentencing is scheduled for July 18.
