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Former VW CEO Martin Winterkorn Under Investigation in Germany

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Josée Paquet

Martin Winterkorn, former head of Volkswagen AG, is reported to be under investigation by German prosecutors for possible stock market violations in the wake of the emissions scandal that befell the German carmaker in 2014. According to Le Monde, the investigation has arisen following a complaint filed by the Bafin (Federal Financial Supervisory Authority), which oversees German financial markets.

Le Monde reports that suspicion in the investigation into stock market irregularities has fallen on two former top directors of Volkswagen AG, including Mr. Winterkorn. The German public prosecutor leading the investigation also noted that the second executive implicated, as yet unnamed, is not the current board chairman of Volkswagen AG, Hans Dieter Poetsch. Mr. Poetsch was chief financial officer for the conglomerate when the diesel emissions scandal first broke.

German authorities have been investigating allegations of deceitful practices at Volkswagen for several months, and have reason to suspect that the company may have destroyed evidence and that one employee of the company attempted to obstruct justice.

The public prosecutor believes that the publication last September 22nd of a communique pertaining to financial losses resulting from the scandal could have been done much earlier. Volkswagen shareholders are scheduled to meet in a general assembly this week, and many of the smaller players are expected to be loud in voicing their displeasure.

 

Josée Paquet
Josée Paquet
Automotive expert