A Volkswagen executive has been arrested and charged with conspiracy to defraud the U.S. government just days ahead of a likely settlement between Volkswagen and the Justice Department:
The Federal Bureau of Investigation has arrested a Volkswagen executive who faces charges of conspiracy to defraud the United States, two people with knowledge of the arrest said on Sunday, marking an escalation of the criminal investigation into the automaker's diesel emissions cheating scandal. Oliver Schmidt, who led Volkswagen's regulatory compliance office in the United States from 2014 to March 2015, was arrested on Saturday by investigators in Florida and is expected to be arraigned on Monday in Detroit, said the two people, a law enforcement official and someone familiar with the case.
After a study by West Virginia University first raised questions over Volkswagen's diesel motors in early 2014, Mr. Schmidt played a central role in trying to convince regulators that excess emissions were caused by technical problems rather than by deliberate cheating. Much of the data presented to regulators was fabricated, officials of the California Air Resources Board have said. Mr. Schmidt continued to represent Volkswagen after the company admitted in September that cars were programmed to dupe regulators. He appeared before a committee of the British Parliament in January, telling legislators that Volkswagen's behavior was not illegal in Europe.
Meanwhile, UK VW owners have filed a class action against the company, seeking at least £3,000 or more per owner.
(Score: 3, Informative) by Anonymous Coward on Tuesday January 10 2017, @06:54AM
Are you kidding? The FBI arrested a suit. Historically, big_corporation's low-ranking scapegoat would be the only one punished while the suits all walked away, fat, rich and unaccountable. This has the potential to be the start of something big.
(Score: 1) by anubi on Tuesday January 10 2017, @07:17AM
From what I have seen, the typical Corporate response is to hang this on some engineer that was told to do this or they would find someone else who will.
Firing that engineer documents the Corporate Executive Team has taken the matter seriously.
"Prove all things; hold fast that which is good." [KJV: I Thessalonians 5:21]
(Score: 1, Interesting) by Anonymous Coward on Tuesday January 10 2017, @10:21PM
From what I have seen, the typical Corporate response is to hang this on some engineer
They already tried that. [nytimes.com] It wasn't enough.
This guy's prosecution is a very positive step towards corporate accountability.
It isn't enough. Not by a long shot. But every journey begins with a single step.
(Score: 0) by Anonymous Coward on Tuesday January 10 2017, @07:42AM
If he was an American executive (billionaire?) there is a 0% chance he would have been arrested.
He probably would have been asked to be part of Trump's cabinet right?
(Score: 0, Insightful) by Anonymous Coward on Tuesday January 10 2017, @12:40PM
Nope, Trump has no interest in dealing with losers, and he would be the first one to give the guy a public dressing down. He is not afraid of shaming people for their actions regardless of how smug they are or how many zeros they have attached to their name. That's one quality of his that has endeared him to me ever so slightly over the last year and a half. The other quality I like about him is that he is not Hillary. Where I was afraid of living in Hillary's America before, I no longer fear the future.
(Score: 0) by Anonymous Coward on Tuesday January 10 2017, @05:18PM
Yup. Between choosing Trump's lies and Hillary's lies, I'd choose Trump. He is a doof, whereas she could fuck your ass with a big BIG stick.
Her connections got her in above Sanders, who should have been running.
(Score: 2) by http on Tuesday January 10 2017, @08:06AM
This guy looks to be middle management, not a suit. Expendable, unless he's got dirt on upper management, in which case quickly expendable.
I browse at -1 when I have mod points. It's unsettling.
(Score: 0) by Anonymous Coward on Tuesday January 10 2017, @10:23PM
> unless he's got dirt on upper management,
The arrest may be strategic. He can plea-bargain a reduced sentence in exchange for dishing that dirt.
(Score: 2) by LoRdTAW on Tuesday January 10 2017, @02:44PM
I would assume this has to do with said suit not paying the proper "union of rich dudes" dues (aka lining the pockets of government officials) and had no protection.
(Score: 1, Interesting) by Anonymous Coward on Tuesday January 10 2017, @10:54PM
They arrested a foreigner and will probably use him as a hostage to obtain a more favorable settlement.
This schmuck may not have been important enough for VW to keep him far away from the US until the situation has blown over, but any career minded person would think twice before taking a transfer to the US.