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UPDATE 1-U.S. SEC demands documents from Navistar as part of fraud probe

(Adds details throughout about the SEC's efforts to obtain records in connection with lobbying activities, adds comment from the company)

By Sarah N. Lynch

WASHINGTON, Jan 29 (Reuters) - The U.S. Securities and Exchange Commission is asking a federal court to force engine manufacturer Navistar International Corp. to hand over lobbying-related records as part of an ongoing fraud investigation into the company.

The SEC said it has been sending Navistar investigative subpoenas since 2012, as part of a probe into whether the company made certain misstatements in connection with its efforts to win certification from the Environmental Protection Agency that its engines comply with clean air laws.

The SEC alleges that Navistar is withholding communications with the law firms and public relations firms it hired to lobby on its behalf, claiming such information is privileged.

"This information bears directly on whether Navistar's understanding of the progress of its efforts to obtain EPA certification, as reflected in its lobbying efforts and its communications with others, was consistent with its public statements regarding this issue," the SEC wrote in its complaint.

The SEC first filed its request in the U.S. District Court for the Northern District of Illinois on Dec. 18, but later amended it on Jan. 22 to include more granular detail about its investigation and its efforts to obtain the records.

The SEC issued a public release about the dispute on its website late on Thursday.

The agency added that the probe is still ongoing, and it has not concluded whether the company or any individuals broke the law.

Navistar spokesman Steve Schrier said in a statement on Thursday that the company disclosed the SEC probe in August 2012, and that the dispute with the SEC centers on a "relatively small number of documents."

In its complaint, the SEC also said it has subpoenaed ASGK Public Strategies and the law firms of Alston & Bird, Mayer Brown LLP, and Williams & Jensen, which performed the lobbying and communication services for Navistar.

Spokespeople for the communications and law firms could not be immediately reached for comment after business hours on Thursday. They were not accused of withholding records in the SEC's complaint.

Schrier said the company believes it has complied with the SEC's request and that it has a "good faith dispute over privilege." (Reporting by Sarah N. Lynch; Editing by Sandra Maler)