Two former Volkswagen engineers have been accused of using confidential information about Volkswagen’s partnership with Rivian to buy stock before the deal was announced, allegedly making more than $300,000 in the process.
The U.S. Department of Justice says Michael Stamp and Marcus Plank learned details of the project through their jobs at a Volkswagen subsidiary, where they were working in the U.S. on temporary assignment from Germany.
According to prosecutors, the pair used that non-public information to purchase Rivian shares and options before Volkswagen officially unveiled its multibillion-dollar software joint venture with Rivian.
The partnership was announced on June 25, 2024. Rivian’s stock jumped roughly 23% the next trading day, and prosecutors allege the two men quickly sold their holdings for substantial profits.
Authorities claim Stamp made approximately US$250,000, while Plank earned at least US$50,000. A close family member of Plank is also alleged to have made about US$12,000 from similar trades.
One of the more unusual details in the indictment involves internet search history. Prosecutors say Stamp searched for “statute of limitations insider trading” eight days before the partnership was announced. After the news became public, a close family member of Plank allegedly searched in German, “how is insider trading prosecuted?”
Both men have been charged with conspiracy to commit securities fraud and two separate securities fraud offences. The most serious charge carries a maximum possible sentence of 25 years in prison, although any sentence would ultimately be decided by the court.
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