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VW Engineers Charged
The U.S. Department of Justice charged two Volkswagen engineers, Michael Stamp and Marcus Plank, with securities fraud tied to an alleged insider-trading scheme connected to Volkswagen’s joint venture with Rivian.
The indictment, unsealed Friday, alleges the engineers made more than $300,000 by using confidential insider information after learning the EV maker and Volkswagen planned to form a joint venture internally codenamed “Project Climb,” but before any public announcements.
The companies announced plans for the joint venture on June 25, 2024, and the deal was described as focusing on developing electric vehicle architecture and software.
Investigators allege the engineers bought Rivian stock and options after learning about the negotiations, then sold their Rivian positions, with Stamp realizing about $250,000 in profits, Plank realizing about $50,000, and Plank’s close family member realizing about $12,000.
U.S. Attorney Jay Clayton said in a statement Friday that “Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits.”
Court, Arrests, and Alleged Searches
The indictment says the engineers understood their actions were illegal, and it describes searches conducted before the joint venture announcement.
Eight days prior to the joint venture was announced, Stamp searched “statute of limitations insider trading,” and Plank’s close family member searched in German “how is insider trading prosecuted?,” according to the indictment.
Both engineers live in San Jose, were arrested Friday, and were expected to appear in the U.S. District Court for the Northern District of California.
The case was assigned to U.S. District Judge Katherine Polk Failla, and Stamp and Plank face up to 25 years in prison if convicted of federal securities fraud.
A Volkswagen spokesperson said in an email statement, “The action is focused on specific individuals and does not involve allegations against the company,” while Rivian declined comment.
Market Impact and Legal Stakes
The alleged scheme centered on confidential information about the joint venture, which TechCrunch says was announced publicly on June 25, 2024 and caused Rivian’s stock price to rise 23% following the initial announcement in June.
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TechCrunch reported that Volkswagen initially committed to invest $5 billion in Rivian, with the capital to be released as the companies achieve certain milestones, and that the joint venture has since grown to $5.8 billion.
The indictment narrative ties the alleged trades to the period before public announcements, when the engineers allegedly bought Rivian stock and options and then sold their positions after the announcement.
U.S. Attorney Jay Clayton framed the charges as a market-integrity issue, saying, “Insider trading is a crime that New Yorkers want pursued with vigor.”
The legal stakes are explicit in the charging documents as reported by TechCrunch: Stamp and Plank face up to 25 years in prison if convicted of federal securities fraud.
