VW exec pleads guilty in emis­sions cheat­ing

Austin American-Statesman - - MONEY & MARKETS - By Corey Williams

A Ger­man Volk­swa­gen DETROIT — ex­ec­u­tive pleaded guilty Fri­day to con­spir­acy and fraud charges in Detroit in a scheme to cheat emis­sion rules on nearly 600,000 diesel ve­hi­cles.

Shack­led at the wrists and an­kles and wear­ing red prison garb, Oliver Sch­midt ap­peared be­fore U.S. Dis­trict Judge Sean Cox as part of the U.S. gov­ern­ment’s case in­volv­ing the au­tomaker, which has ad­mit­ted to us­ing soft­ware to get around U.S. emis­sion stan­dards.

Sch­midt, 48, is a for­mer man­ager of a VW en­gi­neer­ing of­fice in sub­ur­ban Detroit who was ar­rested in Jan­uary while on va­ca­tion in Mi­ami. He faces up to five years in prison for con­spir­acy to de­fraud the U.S., wire fraud and vi­o­la­tion of the Clean Air Act. A sec­ond count of giv­ing false state­ment un­der the Clean Air Act car­ries a pos­si­ble sen­tence of up to two years in prison.

He re­mains jailed and is sched­uled to be sen­tenced Dec. 6. He also could face de­por­ta­tion.

Sch­midt is ac­cused of telling reg­u­la­tors tech­ni­cal prob­lems were to blame for the dif­fer­ence in emis­sions in road and lab tests.

“Sch­midt par­tic­i­pated in a fraud­u­lent VW scam that pri­or­i­tized cor­po­rate sales at the ex­pense of the hon­esty of emis­sions tests and trust of the Amer­i­can pur­chasers,” Deputy As­sis­tant At­tor­ney Gen­eral Jean Williams, who is in the Jus­tice Depart­ment’s En­vi­ron­ment and Nat­u­ral Re­sources Di­vi­sion, said in a news re­lease.

VW pleaded guilty in March to de­fraud­ing the U.S. gov­ern­ment and agreed to pay $4.3 bil­lion in penal­ties.

Oliver Sch­midt, 48, is to be sen­tenced on Dec. 6.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.