SEC Charges Volkswagen, Former CEO

Volkswagen and former CEO Martin Winterkorn have been charged by the U.S. Securities and Exchange Commission for defrauding investors during its diesel emissions scandal, The New York Times reports.  Despite settling with the U.S. two years ago over criminal and civil charges and paying out over $30 billion in penalties, the company is being accused of violating the antifraud provisions of the federal securities laws. The SEC’s complaint involves $13 billion in bonds and other securities and alleges that the company mislead and made false statements to investors about the financial health of the company and the environmental impact of its technology in order to sell securities to investors at inflated prices. The SEC seeks permanent injunctions, repayment of ill-gotten gains, civil penalties and to bar Winterkorn from serving in a corporate officer or director role in the United States.

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