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updated: 9/24/2020 4:09 PM

Wood Dale company Power Solutions agrees to $1.7 million SEC fine

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Daily Herald report

A Wood Dale-based manufacturing company has agreed to pay a $1.7 million civil penalty and continue cooperating in the prosecution of three former employees accused of defrauding investors and the government.

The fine will allow Power Solutions International Inc. to remain in operation and help the government in the criminal prosecution of the three former executives.

The company had already agreed to pay an $8.5 million class action settlement to investors and shareholders.

The fine to the Securities and Exchange Commission has to be paid in full in three years, federal prosecutors said.

Prosecutors said current company officials will continue to assist in the prosecution of former CEO Gary S. Winemaster, former Vice President of Sales Craig M. Davis and former General Manager James F. Needham, who were indicted last year on charges including securities fraud. All three men have pleaded not guilty.

The men are accused of fraudulently inflating the company's revenue reports during a three-year span, defrauding investors who believed the performance of the company's stock was better than it actually was.