07/12/2017

Volkswagen executive jailed over fraud

Reuters reports that a U.S.-based Volkswagen AG executive who oversaw emissions issues has been sentenced to seven years in prison and fined $400,000 (£299,155) by a judge yesterday for his role in the diesel emissions scandal.

After accepting a plea deal, Oliver Schmidt accepted the deal admitting to charges of conspiring to mislead U.S regulators and violate clean-air laws.

'It is my opinion that you are a key conspirator in this scheme to defraud the United States,' U.S. District Judge Sean Cox of Detroit told Oliver in court. 'You saw this as your opportunity to shine ... and climb the corporate ladder at VW.'

Oliver admitted to making 'bad decisions' and apologised for them when he read a written statement in court acknowledging his guilt.

In March, Volkswagen pleaded guilty to three felony counts under a plea agreement to resolve U.S. charges that it installed secret software in vehicles in order to elude emissions tests.

U.S. prosecutors have charged eight current and former Volkswagen executives. Six of those remain at large.

Oliver was charged with 11 felony counts and federal prosecutors said he could have faced a maximum of up to 169 years in prison. As part of his guilty plea, prosecutors agreed to drop most of the counts and Oliver consented to be deported at the end of his prison sentence.

Oliver was in charge of the company's environmental and engineering office in Auburn Hills, Michigan, until February 2015, when he returned to Germany and was told about the secret software.

Regulators in the United States and Europe are investigating other automakers for potential violations of diesel emissions rules.