US arrests Volkswagen executive on fraud charges

10 Jan, 2017

FBI agents have arrested a Volkswagen executive on conspiracy charges in relation to the ''dieselgate'' emissions-cheating scandal, The New York Times reported Monday. Agents arrested Oliver Schmidt, who led the German automaker''s US regulatory compliance office from 2014 to March 2015, in Florida on Saturday, the newspaper reported, citing two unnamed sources with knowledge of the arrest.
Volkswagen has admitted to installing software on as many as 11 million diesel vehicles sold world-wide to circumvent tests for emissions while enabling them to release up to 40 times the permitted amounts of nitrogen oxides during actual driving. According to The New York Times, lawsuits filed against Volkswagen by the states of New York and Massachusetts accuse Schmidt of playing a key role in Volkswagen''s efforts to conceal its emissions cheating from US regulators. "It would not be appropriate to comment on any ongoing investigation or to discuss personnel matters," a VW spokesman in Germany told AFP.
"Volkswagen continues to cooperate with the Department of Justice as we work to resolve remaining matters in the United States." Schmidt is expected to be arraigned Monday in Detroit, the Times said. Herbert Diess, the head of the Volkswagen brand of cars, was asked late Sunday ahead of the annual Detroit autoshow about VW engineers reportedly going to jail for their role in the affair, and of executives fearful that they could be arrested if they travel to the United States.
"I can''t comment," Diess said. "I am here at least." Volkswagen has long pledged to cooperate with US authorities to resolve the ''dieselgate'' case. The NYT reported on Friday that VW was close to agreeing a $2.0 billion fine with the Department of Justice over the scandal.

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