FBI arrest the VW executive who stonewalled on the first Dieselgate reports for defrauding the US Government

Oliver Schmidt led Volkswagen regulatory compliance office from 2014 to Mar 2015, and it was he who issued statements dismissing the initial West Virginia University reports of cheating in the emissions control systems of the company's cars, lying to US regulators and insisting that the systems were merely buggy, and not deliberately designed to get around emissions testing; after the company admitted to the fraud, he appeared before the British Parliament and insisted that the fraud didn't violate EU law.

Although a low-ranking engineer has already pleaded guilty to his role in the fraud, Schmidt is the first exec to be arrested over the affair.

The arrest came as Volkswagen and the Justice Department neared a deal to pay more than $2 billion to resolve the criminal investigation into the emissions cheating. The company or one of its corporate entities is expected to plead guilty as part of the deal.

The settlement could come as early as next week, barring any last-minute hiccups, according to people with knowledge of the negotiations.

The German automaker has been eager to put the Justice Department investigation behind it before President-elect Donald J. Trump is sworn in on Jan. 20.

F.B.I. Arrests Volkswagen Executive on Conspiracy Charges in Emissions Scandal [Adam Goldman and Hiroko Tabuchijan/New York Times]

(via Consumerist)

Notable Replies

  1. If VW's stock tumbles completely off the rails, and it end up going firesale, we should all crowdfund to buy it, then revive it as a DIY, fix-it-yourself-er like the original bug. With modern safety / efficiency and everything, but just the raspberry pi / arduino of cars...

  2. TobinL says:

    Well I guess you gotta fuck with our cars to get the execs arrested.

  3. Say what now, a suit got arrested? I thought there was something impossible about that!

  4. A suit for a foreign company.

    Don't worry - the suits at your good old domestic, patriotic American homegrown companies are unaffected by this development.
    They'll still be free to exploit, harass, defraud and otherwise abuse you in the same way that they've always done.

  5. Then why are all our prisons over half full of people in for "Intent to Distribute?"

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