Volkswagen AG (VW) has been handed a $2.8 billion penalty in federal court in Detroit, marking the culmination of its decade-long scheme to deceive U.S. emissions tests. The company pleaded guilty on March 10, 2017, to three felony counts: conspiracy to defraud the United States, obstruction of justice, and importation of merchandise by false statements.
In a landmark case, U.S. District Judge Sean F. Cox accepted VW’s plea agreement, which also requires the company to fully cooperate with ongoing investigations into individual wrongdoers. The charges include lying to the EPA and U.S. customers about the compliance of certain diesel vehicles with emissions standards, using cheating software, and destroying documents related to the scheme.
Acting Assistant Attorney General Kenneth A. Blanco, Acting U.S. Attorney Daniel L. Lemisch, Deputy Assistant Attorney General Jean E. Williams, Acting Assistant Administrator Larry Starfield, and Special Agent in Charge David Gelios of the FBI’s Detroit Field Office were among those who made the announcement.
As part of the plea agreement, VW will also be monitored by an independent corporate compliance monitor for three years, led by former Deputy U.S. Attorney General Larry D. Thompson. His team includes experts in automotive regulatory compliance and corporate monitors from previous high-profile cases.
‘The sentencing of Volkswagen marks a significant milestone in this historic case,’ said Lemisch. ‘Volkswagen has been punished for its scheme to defeat U.S. environmental standards and cheat U.S. consumers. This prosecution sends a strong message that federal prosecution awaits those who defraud the EPA.’
Acting Assistant Attorney General Blanco added, ‘The Criminal Division will continue to be vigilant in ensuring that all companies abide by our laws. The sentencing of VW vindicates the rights of U.S. consumers who were victims of the company’s fraudulent actions for over a decade.’
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Key Facts
- State: Michigan
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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