An internal whistleblower exposed a scheme by three executives of a Chicago-area engine manufacturer to improperly inflate revenue and cover their tracks by lying to company accountants and independent counsel.

Power Solutions International has agreed to pay a $1.7 million fine and take steps to improve its financial reporting practices, after the Securities and Exchange Commission (SEC) accused the company of improperly overstating its revenue by almost $25 million over two years.

Aaron Nicodemus is the Editor-in-Chief of Compliance Week. He previously worked as a reporter for Bloomberg Law and as business editor at the Telegram & Gazette in Worcester, Mass. Email: aaron.nicodemus@complianceweek.com LinkedIn:...