An investigation into a defect tied to at least 104 deaths has found criminal wrongdoing, according to the New York Times, and the company is negotiating with the government to reach "what is expected to be a record penalty."

The settlement being negotiated is expected to be far greater than the $1.2 billion paid last year by Toyota, sources told the paper.

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The sources told the newspaper that former G.M. employees, some of whom have already been dismissed, are also being investigated and could face criminal charges.

Read more here.