Volkswagen exec sentenced to seven years in prison PAYING THE PRICE

A Volkswagen AG compliance executive who pleaded guilty in the US for his role in the company’s $30 billion emissions cheating scandal was sentenced to 7 years in prison.

Oliver Schmidt ( pictured), VW’s compliance liaison with American regulators, pleaded guilty in August to one count of conspiracy to defraud the US and another of violating the Clean Air Act. Federal prosecutors sought the maximum of seven years, while Schmidt asked US District Judge Sean Cox to limit his sentence to 40 months, saying he’d been coached to lie about emissions by his bosses. “I only have myself to blame,” Schmidt said before Cox handed down the sentence. He admitted that he tried to conceal VW’s cheating. “I accept the punishment.”

Cox sentenced Schmidt to 60 months for the first count and 24 months for the second count, to run consecutively. Schmidt was fined $400,000. Schmidt knew VW’s vehicles weren’t compliant with US emissions standards, Cox told the defendant.

“In my opinion, you were a key conspirator, responsible for the cover-up in the United States,’’ the judge said. Schmidt worked with VW management to conceal the fraud, using it as an “opportunity to shine, and climb the corporate ladder,’’ Cox added. “This is a very serious, troubling offense.’’

Volkswagen has already incurred about $30 billion in costs following its September 2015 admission that it outfitted about 11 million diesel cars worldwide with a defeat device, embedded software that allowed the vehicles to recognise when they were being tested in laboratory conditions, and to reduce emissions to | | | German native Oliver Schmidt ( pictured) pleaded guiltyto conspiracy, pollution count Diesel-emissions scandal has cost Volkswagen

far Federal prosecutors sought the maximum of seven years, while Schmidt asked US District Judge Sean Cox to limit his sentence to 40 months meet acceptable levels.

VW developed the devices in an attempt to boost sales by offering “clean diesel” that would meet heightened emissions standards and attract environmentally conscious customers. The company needed to certify that the vehicles complied with US standards and wasn’t able to do so without cheating.

VW’s costs so far include settlements of government and customer lawsuits, buybacks and retrofits of affected vehicles, and the criminal plea deal, which included $2.8 billion in criminal fines and $1.5 billion in civil penalties. The firm and its executives are still under investigation in Germany and it faces investor lawsuits in the US and at home. Schmidt is the second employee sent to prison for participating in the cheating scheme. BLOOMBERG

Schmidt was fined $400,000. He knew Volkswagen’s vehicles weren’t compliant with US emissions standards