Americus To Close Plant in Wake of Fraud Investigation
An auto-parts company is probably going to have to close its Americus plant because of financial difficulties caused by a securities fraud investigation. The vice president of Collins & Aikman Corp. based in Southfield, Michigan indicated that this plant most likely will be shut down in the next couple of weeks. While no layoffs have yet been announced, this closure will most likely put over 300 people out of a job. A company representative reports that they will know how many workers will be laid off over the course of the next few weeks.
The company filed for bankruptcy in 2005, and government prosecutors are investigating whether the former chairman and CEO of Collins & Aikman, David Stockman, was involved in securities fraud, mail fraud or wire fraud. The prosecutions will present his findings to the grand jury in the next few weeks.
Related Links:
Closing of Americus Automotive-Parts Plant is Likely
Legal View - Securities Fraud
US: Collins & Aikman to Close Americus Plant
300 Plant Workers Could Be Laid Off
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