The Securities and Exchange Commission has been investigating German automaker BMW. The news was confirmed by a company spokesperson a few days ago. The investigation is regarding BMW’s sales practices, specifically whether the company is “punching” its sales.

The German automaker confirmed it has been contacted by the Securities and Exchange Commission, however, declined to provide further comment on the ongoing investigation.

“Sales punching” means that a dealer or an automaker self-registers car as loaners and later sells them as used with little mileage on them. It would help dealers hit company targets or automakers in achieving sales titles.

The commission is looking into the luxury brand’s US operations because BMW has allegedly been engaging in a practice known as “sales punching,” in which a dealer reports vehicles that are still in inventory as being sold. This shows up as inflated sales, which looks good on a monthly balance sheet but it can cause all kinds of other problems down the line.

Investigating inflated vehicle sales is not unprecedented. Earlier this year, U.S. regulators settled an investigation with Fiat Chrysler over charges it inflated U.S. sales to keep a monthly streak going. That investigation resulted in Fiat Chrysler Automobiles paying a little cash for a fine and promising never to do it again. We expect similar results for BMW if found guilty.

According to CNBC.