DETROIT — In a stunning revelation, Volkswagen AG (VW) has pleaded guilty in federal court in Detroit to a sweeping conspiracy involving fraud and environmental violations. The German automaker admitted to deliberately designing and selling diesel vehicles equipped with software capable of cheating on U.S. emissions tests over a decade-long period.
As part of the plea deal, VW agreed to pay a staggering $2.8 billion penalty for its scheme that misled both the Environmental Protection Agency (EPA) and American consumers about the compliance of certain VW, Audi, and Porsche models with U.S. emissions standards. This monumental fine comes in addition to the January 2017 agreement by VW to settle these criminal charges.
The charges against Volkswagen include conspiracy to defraud the United States, engage in wire fraud, violate the Clean Air Act, obstruction of justice, and importing merchandise by means of false statements. U.S. District Judge Sean F. Cox scheduled the company’s sentencing for April 21, 2017.
Acting Assistant Attorney General Kenneth A. Blanco, along with U.S. Attorney Barbara McQuade and Deputy Assistant Attorney General Jean E. Williams, among others, made the announcement of Volkswagen’s guilty plea. The investigation into VW was spearheaded by the FBI Detroit Field Office and the EPA-CID, with significant contributions from the Department of Justice’s Criminal Division, Fraud Section.
The court heard that VW not only participated in a conspiracy to defraud U.S. customers but also destroyed documents related to its fraudulent activities. The company’s deceitful practices were aimed at circumventing U.S. emissions testing and concealing material facts from regulators. This brazen act of deception has prompted a significant legal and financial penalty for Volkswagen.
With the sentence scheduled for early 2017, this case serves as a stark reminder of the consequences when corporations engage in fraudulent practices that harm both the environment and consumers. The Justice Department’s Office of International Affairs also played a role in the case, acknowledging assistance from the Office of the Public Prosecutor in Braunschweig, Germany.
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Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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