Volkswagen ex-CEO charged with fraud in diesel emissions scandal


The US government has charged Martin Winterkorn, the former chief executive officer of Volkswagen, with fraud in the company’s diesel emissions-cheating scandal.

The indictment was unsealed in Detroit on Thursday, revealing that Winterkorn had been charged on March 14 with wire fraud and conspiracy to defraud VW’s American customers and violate the Clean Air Act. The federal prosecutors say the charges stem from Volkswagen’s diesel emissions scandal, which was unearthed by the Environmental Protection Agency and other organizations in 2015.

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Diesel cars from Volkswage (VLKAF)and Audi, which is owned by VW, were rigged to cheat on clean air rules with software that made emissions look cleaner than they actually were, according to federal and California regulators.

Volkswagen admitted in late 2015 that it fitted as many as 11 million diesel vehicles worldwide with software that could cheat emissions tests.

In a statement, Volkswagen said “It continues to cooperate with investigations by the Department of Justice into the conduct of individuals. It would not be appropriate to comment on individual cases.”

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The charges were unsealed on the same day as Volkswagen’s annual shareholders meeting.

Winterkorn, 70, is believed to be a resident of Germany. He is the ninth person charged by the US government in this scandal. Two former engineers have pleaded guilty.

The scandal has cost Volkswagen dearly. The company agreed to a $14.7 billion settlement with the US in 2016, which requires Volkswagen to repurchase the dirty diesel cars it sold, or give cash payouts to owners who decide to keep the cars and get them fixed.

CNNMoney (New York) First published May 3, 2018: 5:01 PM ET

Source : Nbcnewyork