Ex-Motorcar President Admits Guilt, Will Pay $1.2 Million

The former president of Motorcar Parts & Accessories Inc. on Wednesday agreed to plead guilty to falsifying company records and pay $1.2 million.

Richard Marks, 51, admitted to inflating Motorcar’s revenue and profit for 1997 by falsely reporting sales that were shipped after year-end and double-counting inventory in 1998, the Securities and Exchange Commission and U.S. attorney’s office in Los Angeles said in a joint statement.

Marks resigned from his position in September at the request of the Torrance-based company’s board. Last year, Peter Bromberg, Motorcar’s former chief financial officer, pleaded guilty to charges he falsified company books by overstating pretax earnings in 1997 and 1998.

Marks will pay $1.2 million and be permanently barred from serving as an officer of a public company to settle the SEC’s civil charges. He also agreed to plead guilty to criminal charges of making false statements to the SEC; each count carries a maximum penalty of 10 years in prison and a $1-million fine.

Sheldon Jaffe, an attorney representing Marks, said his client had taken responsibility and expected to put this matter behind him promptly.

The company repairs and resells automobile starters and alternators.

Motorcar’s stock traded on Nasdaq in 1997 and 1998. It was delisted in 1999 and now trades on the over-the-counter market. Shares of Motorcar rose 1 cent to $5.66 on Wednesday.