Ex-VW exec sentenced to seven years for 'dieselgate'

Washington, Dec 7 (AFP) A US court has sentenced formerVolkswagen executive Oliver Schmidt to seven years in prisonfor his role in the German autom...

Washington, Dec 7 (AFP) A US court has sentenced formerVolkswagen executive Oliver Schmidt to seven years in prisonfor his role in the German automaker's "dieselgate" emissionscheating scandal.

Schmidt, who led Volkswagen's US regulatory complianceoffice from 2012 to March 2015, was also ordered by a federaljudge in Detroit to pay a USD 400,000 fine.

He had pleaded guilty in August to charges he conspiredto commit fraud and violate the US Clean Air Act.

Schmidt, 48, the second and most senior employee to pleadguilty in the affair, is among eight current and former VWexecutives that US prosecutors have charged so far.

In exchange for his plea, federal prosecutors droppedmultiple counts of wire fraud, which carry a maximum of 20years in prison.

Schmidt has agreed to be deported back to Germany afterhis sentenced is completed.

In August, the same court sentenced James Liang, aVolkswagen engineer who had cooperated with investigatingauthorities, to 40 months and a USD 200,000 fine for his rolein the affair. Six VW or Audi executives remain at large.

VW admitted in 2015 to equipping about 11 million carsworldwide with defeat devices, including about 600,000vehicles in the United States, which allowed them to deceiveemissions tests but emit up to 40 times the permissible levelsof harmful nitrogen oxide during actual driving.

A study published in May found that excess nitrogen oxidefrom improperly configured diesel vehicles had contributed toabout 38,000 premature deaths worldwide in 2015.

The scandal has so far reportedly cost the auto giant asmuch as USD 30 billion in fines, settlements and remediation.

In arguing for a seven-year sentence, prosecutors lastmonth said Schmidt had participated in "one of the largestcorporate fraud schemes in American history" and led effortsto cover up the company's misconduct in the summer of 2015.

Schmidt traveled to the US as the scandal was breaking ona mission to lie to US and Californian authorities soVolkswagen could obtain regulatory approvals to sell 2016model year diesel vehicles in the United States, according toprosecutors.

"Schmidt sent detailed updates to VW management inGermany apprising them of precisely what he had said, andmaking it obvious that he was following the script ofdeception and deceit that VW, with Schmidt's input, hadchosen," prosecutors told the court last month.

Defense lawyers had sought a sentence of only 40 monthsand a USD 100,000 fine, saying Schmidt's participation in theconspiracy had not occurred until nine years after it beganand that he had expressed remorse.

In March, VW brought an end to Washington's criminalpursuit of the company, agreeing to pay USD 4.3 billion incivil and criminal fines and plead guilty to charges itlikewise had defrauded the United States and violated theClean Air Act.

But the company continues to face legal challenges inGermany and elsewhere. (AFP)CPS.

This is unedited, unformatted feed from the Press Trust of India wire.

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