VW Regulatory Compliance Officer Arrested For Diesel Emissions Fraud

Volkswagen was surprised to find out one of its U.S. executives had been arrested on Saturday on charges of defrauding the U.S. government on diesel car emissions.

Oliver Schmidt had headed VW’s regulatory compliance office in the U.S. from 2014 to March 2015. He was arrested in Florida on conspiracy charges for fraudulent reporting of VW vehicles sold in the U.S., VW sales chief Juergen Stackmann said on Monday.

Oliver Schmidt.

Oliver Schmidt.

“We even don’t know if there is a connection (to false diesel car emissions claims),” Stackmann told Reuters on the sidelines of the Detroit auto show. He expects to hear more “in the coming days.”

Schmidt was scheduled to appear in court in Miami on Monday, according to a spokeswoman for the United States Attorney’s office in Detroit.

The Florida arrest occurred soon after a VW executive in South Korea received a jail sentence over the diesel emissions scandal. An executive with the surname of Yun was convicted of fabrication, obstruction of work, and violation of an environmental law.

SEE ALSO:  Volkswagen South Korea Executive Given Jail Sentence For Emissions Cheating

VW engineer James Liang pleaded guilty in a U.S. court in September on a conspiracy charge over fraudulent emissions software. He was the first employee to be indicted and plead guilty on criminal charges due to false diesel car emissions reporting claims, while Yun was the first to be sentenced. Liang is still awaiting sentencing.

The German automaker was reported on Friday to be close to paying more than $2 billion to settle a U.S. criminal investigation over cheating on emission tests.

Reuters


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