Volkswagen’s Chief Executive Suspected Of Market Manipulations Over Harmful Emission Scandal

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German Prosecutors suspect Matthias Muller–Volkswagen’s Chief Executive officer to be a part of the emission scandal and market manipulations which happened in September 2015. This scandal had already cost the company billions of dollars towards the fines and settlements to overcome those charges. They had to call back millions of cars after the emission scandal busted out. According to the allegations, the car engine systems had a software device “defeat device” which would allow cars to avoid any emission standards laid down by the regulatory bodies. The investigation was initiated on the basis of the complaint filed by the Federal Financial Supervisory Authority of Germany which is similar to the United States Securities and Exchange Commission.

Not only Matthias Muller but also other top management officials like Hans Dieter Potsch, the chairman of Volkswagen’s supervisory board and Martin Winterkorn, the automaker’s former chief executive is also in the list of accused who would be interrogated in this scandal. In fact, the top management is accused of getting diverted from their responsibility to warn the customers and regulatory bodies of the risk that could have led to the decline in their share prices in the stock market.

Volkswagen already found guilty and fined for avoiding the standard emission limits in the US.

The United States regulatory bodies have already fined Volkswagen in the US for a penalty of $4.3 billion under the plea agreement terms. This is just a small amount of the total settlement amount of $22 billion executed till now. Defraud charges are filed against six management executives in the US and one engineer is found guilty in these accusations. According to the prosecutors, the executives have intentionally withheld the information and didn’t disclose it to the customers in order to avoid any financial losses. They are also accused of manipulating the stock market regulations for their personal gains.

Although Porsche is managed by the Porsche S.E management board and these three people are either the current or former member of this board, but this is a publicly traded company and has to abide by the stock market regulations. These members are entitled to a dividend and don’t enjoy any voting rights in the company. The allegations are denied by the Porsche S.E management team stating that they have systematically executed their obligations laid down under the capital markets law.

Mr. Winterkorn and Herbert Diess are the major suspects’ for similar allegations in Braunschweig. Mr, Winterkorn had already resigned from this position as a Chief Executive officer from Volkswagen and Herbert Diess is one of the boards of directors who were responsible for managing all the cars under Volkswagen brand.

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