Six high-level Volkswagen employees from Germany have been indicted in the U.S. in the automaker’s emissions-cheating scandal as prosecutors made good on efforts to charge individuals in a corporate corruption case.
Now, one is in handcuffs after flying into Miami for a luxurious vacation — and authorities say he’s so corrupt, they fear letting him out on bail will result in him fleeing the country.
A detention hearing for 48-year-old Oliver Schmidt is scheduled Thursday in Miami, where he was arrested on an expensive vacation to the U.S. from Germany.
Prosecutors say Schmidt should remain jailed until the case is resolved because he might flee to Germany. Schmidt’s lawyers insist he would remain in the U.S. if released.
The charges are part of the government case against VW for knowingly selling diesel vehicles that didn’t meet U.S. emissions standards. The company itself has agreed to plead guilty on the criminal case and pay a record $4.3 billion penalty.
In announcing the federal charges and a corporate plea bargain by VW, Justice Department prosecutors on Wednesday detailed a large and elaborate scheme inside the German automaker to commit fraud and then cover it up, with at least 40 employees allegedly involved in destroying evidence.
The company agreed to plead guilty to criminal charges and pay $4.3 billion — by far the biggest fine ever levied by the government against an automaker.
But prosecutors may have trouble bringing the executives to trial in the U.S. German law generally bars extradition of the country’s citizens except within the European Union.
Still, the criminal charges are a major breakthrough for a Justice Department that been under pressure to hold individuals accountable for corporate misdeeds ever since the 2008 financial crisis.
U.S. authorities are still investigating just how high the scheme went, and held out the possibility of charges against more VW executives.
“We will continue to pursue the individuals responsible for orchestrating this damaging conspiracy,” Lynch said.
VW admitted installing software in diesel engines on nearly 600,000 VW, Porsche and Audi vehicles in the U.S. that activated pollution controls during government tests and switched them off in real-world driving. The software allowed the cars to spew harmful nitrogen oxide at up to 40 times above the legal limit.
U.S. regulators confronted VW about the software after university researchers discovered differences in testing and real-world emissions. Volkswagen at first denied the use of the so-called defeat device but finally admitted it in September 2015.
Even after that admission, prosecutors said, company employees were busy deleting computer files and other evidence.
The fines easily eclipse the $1.2 billion penalty levied against Toyota in 2014 over unintended acceleration in its cars. VW also agreed to pay an additional $154 million to California for violating its clean air laws.
The penalties bring the cost of the scandal to VW in the United States to nearly $20 billion, not counting lost sales and damage to the automaker’s reputation. Volkswagen previously reached a $15 billion civil settlement with U.S. environmental authorities and car owners under which it agreed to repair or buy back as many as a half-million of the affected vehicles.
Although the cost is staggering and would bankrupt many companies, VW has the money, with $33 billion in cash on hand.
As for why the fine was so big, “the premeditation here was very significant and that was at a very high level in the company,” said Leslie Caldwell, an assistant U.S. attorney general.
“Lower-level people actually expressed concern along the way about the fact these defeat devices were being used and questioned whether they should be used. And higher-up people decided to use them,” Caldwell said. “Volkswagen also lied to the regulators and the Department of Justice once our investigation had started. That’s what distinguishes this.”
Volkswagen pleaded guilty to conspiracy, obstruction of justice and importing vehicles by using false statements. Under the agreement, VW must cooperate in the investigation and let an independent monitor oversee its compliance for three years.
The six supervisors indicted by a federal grand jury in Detroit were accused of lying to environmental regulators or destroying computer files containing evidence.
The Associated Press contributed to this article
I’m proud to say that I buy American, UAW built cars..I’ve had good service from Detroit cars GM..Ford and Chrysler aren’t perfect. However, neither are the foreign car makers.
Justice Department; “corporate misdeeds” is more important to this country than Hillary’s treason? Are we to feel better about the Justice Department now?
the justice department is very selective when it comes to who or whom they go after. This is a done deal–so it makes them look a lot better than they really are. Now they need to go killary and the flinton foundation.
In my younger days I did mechanical work on my car and motorcycle. It was common-practice for people like me to either eliminate or bypass pollution/emission control parts on vehicles. This would improve gas mileage and performance. What I did was no different than these VW executives are accused of doing-although on a much larger scale. This is just an old-fashioned mafia style shakedown of Volkswagen by our US Government. Cars that used to cost $10,000 now cost $30,000 because of the new costs involved with these EPA standards. And the investigation time involved with this case could have been better-spent fighting more important criminals. I just don’t understand what is so serious about this case. Big bleeping deal!!
So right on. This is small compared to HILLARY and OBAMA and their raping of the American people.
So right on. This is small compared to HILLARY and OBAMA and their raping of the American people.
HILLARY and OBAMA have committed treason against Americans
NO!
All that money Volkswagen is paying. Where is it going. Obamas vacations. I for one would like to see a line by line itemized detailed list of where all that money is going. Six billion HILLARY state department misplaced and another 30 billion. That could buy five houses, cars airplanes and a nice retirement for the right person. One who can’t be prosecuted for any crimes.
All those crooked executive shouldn’t be worried. CNN will offer them jobs shilling for the Democratic Party.
All those crooked executive shouldn’t be worried. CNN will offer them jobs shilling for the Democratic Party.
All those crooked executive shouldn’t be worried. CNN will offer them jobs shilling for the Democratic Party.
All the car makers should be forced to report the truth to car buyers. They have gotten away with exaggerated claims for too long.
Anyone dumb enough to support Obamacare will probably still buy one of these used fraudulent cars because it’s the politically correct thing to do. All registered Democrats should be forced to buy them with their tax refunds.
I’m going to guess that VW executives are probably canceling any planned trips to the United States.
It sounds like this was a widespread case of fraud. As such it is appropriate that the company get stuck with a huge fine. I’m glad to see they are being forced to repurchase or fix the defective products they sold consumers. VW does not sell inexpensive cars. It is good to see that their customers are not going to get left holding the bag.
Charges are not justice conviction and punishment are justice, fine levied are not payment nor punishment, payment secured is punishment. Now while the prosecutors are at why not chase down some of those wall street wolves responsible for ripping off millions of people world wide and getting some convictions there too. Just because they are Americans doesn’t mean they should not only get away with their schemes but be rewarded as well.
Come on get aboard let’s chase them down and give them all a good thrashing!!!!
Scumbagary!!
What a joke the EPA has been fooled for years starting in California back in the mid 1960s. The US automakers added a pump to blow fresh air into the exhaust system on the cars so that when the EPA testers sniffed the exhaust it was cleaner than one not blowing fresh air in the exhaust. What a bunch of idiots. All this is doing is running up the price of VWs and the consumers, you and me are paying the price. Just a little common sense here would go a long way. A VW diesel burning 1 gallon of fuel in 60 miles is making a whole lot less pollution than a gasoline car burning 3 gallons of fuel in 60 miles.
Hitler’s revenge.
Let’s see, now, what happens to Kissinger, Albright, Klinton, Klinton, oBOMBer, or various WSEs when they deplane in Europe. MY list is very, very long, as long as my memory.
VW should also be hit with a BIG tax on every vehicle they import into the US for years to come.
And, yes, Americans should know where this money is going. Should be used to pay down our debt!
Hello,
Everyone who reads things on this site, please go out and buy something from LL Bean.
I was watching the news yesterday and because the CEO of LL Bean made a donation to the Trump campaign the Liberals are trying to start a boycott of LL Bean.
Please forward this email to all of your Friends and ask them to support LL Bean and to also forward this email to their Friends.
Also if you know of any other companies that the Liberals are trying to boycott please support them also.
Trump supporters need to start of a boycott of the celebrity Hillary supporters of companies like Old Navy and others who hire people like Amy Shumer to do TV commercials for their companies.
Some Democrats are the lowest form of life. I do not remember hearing of any sort of boycott the last 8 years by Republicans when Obama was elected
Emissions standards are designed to eventually destroy select auto manufacturers. Eventually forcing
society from their cars.
The fines/ monetary dollars shall be distributed to every legal U.S. person in this country and not deposited into the U.S Treasuries or any other government agencies “Account”. The damage “So to speak” was done to the legal U.S. population not the government and/ or any of the agencies. The government and it’s agencies “All Lawyer-ing, Police-ing, and etc. has been compensated/ paid by the legal U.S. population/ taxpayers. Double payment to any U.S./ State/ County/ Local entities is Unconstitutional – period. Too long have these governmental agencies profited off the backs of the legal U.S. population/ taxpayers. It stops now.
VW just paid 4 plus Billion to settle criminal charges. Sorry all you executive haters but 4 Billion paid for his release. Just more of Obama’s government extortion racket, it worked with VW so now today DOJ announced they are going after Fiat Chrysler.
Watch out EPA but Trump intents to put you out of business. Good riddance !!!
Actual prosecution of a major corporate executive would be novel if nothing else. I don’t know if criminal prosecution would be justified, however I will suggest the following. Unless blue is your best color, don’t hold your breath waiting to see prosecution.
I am sure that after O leaves office, things about his money grabbing among other things he has done and allowed will be forthcoming to the public. He cannot hush up the people any longer.