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Dieselgate: US charges Volkswagen and ex-chief executive with multi-billion investor fraud

Dieselgate: US charges Volkswagen and ex-chief executive with multi-billion investor fraud

A US regulator has charged Volkswagen and former chief executive Martin Winterkorn with defrauding investors in relation to the emissions scandal.

The Securities and Exchange Commission said the German motor giant issued more than 13 billion dollars (circa £10 billion) in bonds and asset-backed securities in US markets between April 2014 and May 2015, when senior executives knew more than 500,000 vehicles in the country grossly exceeded legal vehicle emissions limits.

The complaint claims Volkswagen made false and misleading statements to investors and underwriters about vehicle quality, environmental compliance and the company’s financial standing, which gave Volkswagen a financial benefit when it issued securities at more attractive rates for the company.

Winterkorn quit from his position soon after the scandal broke in September 2015.

MORE: VW faces billions in fines in USA over emissions scandal

MORE: Martin Winterkorn resigns 

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