Volkswagen ignored concerns that selling the diesel vehicles with defeat devices will damage its reputation if regulators discover its high emissions. The German automaker increased its global sales by 54 percent in four years from 2009 to 2013. It surpassed Toyota as the world’s largest automaker.
Years later, U.S. regulators later found that Volkswagen’s diesel vehicles have software that defeats the emission standards for certain air pollutants. In March 2017, the German automaker pleaded guilty to conspiracy to commit fraud, obstruction of justice, and importing goods by false statements.
The SEC argued that the German automaker issued securities at more attractive rates and obtained hundreds of millions of dollars by concealing its emissions scheme.
In a statement, Stephanie Avakian, Co-Director of the Division of Enforcement, said, “Issuers availing themselves of American capital markets must provide investors with accurate and complete information. As we allege, Volkswagen hid its decade-long emissions scheme while it was selling billions of dollars of its bonds to investors at inflated prices.”
