Executives of Wood Dale manufacturer charged with fraud

Three executives of a Wood Dale-based engine-manufacturing company are facing federal fraud charges after prosecutors say they schemed to artificially inflate the firm's stock value.

Gary Winemaster, 61, of Mundelein was the CEO and chairman of the board of Power Solutions International Inc. He is charged with multiple wire and securities fraud counts as well as making false statements to an auditor and failing to certify financial reports.

Craig M. Davis, 45, of Batavia was the company's vice president of sales. James F. Needham, 57, of Kansas was the company's general manager. They are both charged with multiple counts of wire and securities fraud.

Prosecutors say the three worked in concert from 2014 to 2016 to artificially inflate sales figures, which in turn falsely boosted the value of the company's publicly traded Nasdaq stock. Winemaster was the company's largest shareholder. The fraud charges carry a maximum sentence of 25 years in prison if convicted.

The law firm representing Winemaster, Latham & Watkins in Chicago, said in a statement that Winemaster intends to fight the charges.

"The indictment is the result of an over aggressive theory of prosecution that is attempting to criminalize ordinary business practices and business setbacks. Mr. Winemaster acted in the best interests of PSI's stockholders at all times," the statement said.

"He never sold a single share of stock during this period and suffered more than any other individual as a result of the negative impact on PSI's business of the unprecedented downturn in the oil market," the statement said.

"The charges referenced in the indictment include real sales where real customers paid PSI for actual products."