Feds probe Delphi exec stock trades - Criminal investigation of accounting at auto supplier expands as firm considers bankruptcy.

September 29, 2005
By David Shepardson
The Detroit News

TROY -- Delphi Corp., already on the verge of bankruptcy and cooperating with a massive federal investigation into its accounting practices, now faces a new inquiry into stock trades made by more than a dozen former and current employees.

The U.S. Securities and Exchange Commission has subpoenaed the stock trading records of executives who left the company since March, including Chief Financial Officer Alan Dawes, Controller Paul Free, Treasurer Pam Geller, and John Blahnik, a former vice president of treasury, mergers and acquisitions, said four people familiar with the investigation.

At least another eight current and former executives and mid-level employees have received subpoenas for trading records dating back to the company's spinoff from General Motors Corp. in 1999, people familiar with the investigation said.

A separate criminal investigation into the huge Troy-based auto supplier's accounting practices led by the Justice Department's fraud section and the FBI is continuing...