Prosecutors Pursue Criminal Fraud Charges Against GM

Federal investigators are compiling charges of wire and mail fraud against General Motors Co. for its 10-year delay in recalling ignition switches linked to 13 fatalities, Reuters reports.

Unnamed sources tell the news service that prosecutors are looking at GM's activities dating back before the company's 2009 bankruptcy. A bankruptcy is no shield against criminal fraud, and there is no cap on the penalties that could be imposed if GM is found guilty.

Reuters says the developing case will argue that GM committed fraud by telling consumers and federal safety officials that cars equipped with the fault switches were safe.

Delphi Automotive plc, which produced the component, is not a target of the probe. Reuters' sources say the supplier won't be pursued because it didn't make public statements about the safety of the switch or vehicles in which it was used.

At least a dozen states are pursuing their own investigations of GM. Reuters say those probes are expected to focus on whether GM violated state consumer protection laws by committing unfair or deceptive practices.