According to reports the U.S. Federal Bureau of Investigation arrested a Volkswagen AG executive alleged of contributing in a plot to defraud the U.S. in connection with the company’s emissions-cheating outrage.
This news of detention arrives amid Volkswagen looking to resolve criminal prerogatives curtailing from its charge in 2015 that it manufactured nearly 600,000 diesel-powered cars sold in the U.S. to cheat on emissions tests.
Volkswagen reportedly settled to pay almost $17.5 billion in the U.S. to resolve claims with watchdogs, consumers, dealers and state attorneys general and could face another multibillion-dollar penalty in the expected criminal case.
Meanwhile Mr. Schmidt has been working as head of Volkswagen Group of America’s Engineering and Environmental Office in Ann Arbor, Mich., from 2014 to early 2015. He is still working for Volkswagen, based in Wolfsburg, Germany.
Mr. Schmidt was reportedly arrested in Florida and was set to be charged in Miami on Monday, and doesn’t at present have a plea agreement with the U.S. Justice Department.
This arrest came after the indictment last year of James Liang, a veteran Volkswagen engineer who pleaded guilty to bonding with other Volkswagen employees to defraud the U.S. through the diesel cheating. Mr. Liang hasn’t been penalized, pending his assistance in the federal investigation.
Volkswagen said it could not comment on an “ongoing” legal matter.