A former Volkswagen engineer was sentenced to 40 months in federal prison last week for his central role in a decade-long conspiracy to deceive U.S. regulators and consumers regarding the emissions output of “clean diesel” vehicles. James Robert Liang, 60, pleaded guilty to one count of conspiracy to defraud the U.S., commit wire fraud, and violate the Clean Air Act, bringing to light a sophisticated scheme that impacted hundreds of thousands of vehicles sold in the American market.
According to court documents, Liang began work at Volkswagen AG in 1983, eventually becoming a key figure in the development of the “EA 189” diesel engine around 2006. Facing challenges in meeting increasingly stringent U.S. emissions standards, Liang and his co-conspirators devised a plan to install a “defeat device” – software designed to recognize when a vehicle was undergoing emissions testing on a dynamometer. This software allowed the vehicle to perform within legal limits during testing, while emitting pollutants at significantly higher levels during normal driving conditions. Liang was specifically tasked with calibrating this defeat device to accurately identify U.S. testing procedures.
In 2008, Liang relocated to the United States, taking on the role of Leader of Diesel Competence at Volkswagen’s testing facility in Oxnard, California. From 2009 to 2016, Liang knowingly participated in the continued fraudulent certification of VW diesel vehicles to the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). During meetings with regulators, Liang and others falsely claimed that the vehicles complied with U.S. emissions standards, despite the presence of the deceitful software. The company aggressively marketed these vehicles as “clean diesel,” capitalizing on the false promise of environmental friendliness and improved fuel economy, all facilitated by the defeat device.
The scheme began to unravel following an independent study commissioned by the International Council on Clean Transportation, which revealed that VW diesel vehicles emitted pollutants more than 30 times higher on the road than during laboratory testing. Even after these discrepancies came to light, Liang and his co-conspirators continued to mislead the EPA, CARB, and consumers, attempting to conceal the truth and prolong the fraudulent practices. The FBI’s Detroit Office and the EPA’s Criminal Investigation Division (CID) led the investigation, uncovering the breadth and depth of the conspiracy.
Key Facts
- Defendant: James Robert Liang
- Crime: Conspiracy to defraud the U.S., commit wire fraud, and violate the Clean Air Act.
- State: Michigan
- Year: 2017
- Statutes Violated: Title 18 U.S. Criminal Code, specifically 18 U.S.C. 371
- Sentence: 40 months in federal prison, followed by two years of supervised release.
- Impact: Hundreds of thousands of Volkswagen “clean diesel” vehicles were affected by the fraudulent software.
The court acknowledged Liang’s cooperation with investigators during sentencing, a factor considered in the 40-month term. However, the severity of the crime – a deliberate and long-running effort to deceive regulators and consumers – warranted significant punishment. This case is part of a larger investigation into Volkswagen’s emissions scandal, which has resulted in billions of dollars in fines and settlements. The prosecution was handled by the Criminal Division’s Fraud Section, the Environment and Natural Resources Division, and the U.S. Attorney’s Office of the Eastern District of Michigan.
The laws violated, specifically 18 U.S.C. 371, address conspiracy to defraud the United States. Penalties can include imprisonment, fines, and forfeiture of assets. In this instance, Liang faced a maximum sentence of five years in prison and a $250,000 fine. The case highlights the critical importance of regulatory oversight and the severe consequences for those who prioritize profit over environmental responsibility and consumer trust.
Source: EPA ECHO Enforcement Case Database
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