Key facts
- Two Volkswagen engineers, Michael Stamp and Marcus Plank, have been charged with securities fraud by the U.S. Department of Justice.
- The charges allege an insider-trading scheme connected to a joint venture between Volkswagen and Rivian.
- The engineers allegedly made over $300,000 in illegal profits by trading Rivian stock and options based on non-public information.
- The joint venture was announced on June 25, 2024, leading to a 23% rise in Rivian's stock price.
- Evidence includes internet searches by the engineers related to insider trading laws and prosecution.
- Stamp and Plank face up to 25 years in prison if convicted.
Two Volkswagen engineers, Michael Stamp and Marcus Plank, have been charged with securities fraud by the U.S. Department of Justice for allegedly engaging in an insider-trading scheme. The indictment, unsealed Friday, claims the engineers used confidential information about a planned joint venture between Volkswagen and electric vehicle maker Rivian to illegally profit.
According to prosecutors, Stamp and Plank purchased Rivian stock and options after learning about the partnership, internally codenamed 'Project Climb,' but before it was publicly announced. The joint venture, focused on developing EV architecture and software, was officially announced on June 25, 2024, with Volkswagen initially committing to invest $5 billion in Rivian. Following the announcement, Rivian's stock price surged 23%.
The indictment details that Stamp allegedly realized approximately $250,000 in profits, while Plank realized about $50,000, and a close family member of Plank made around $12,000. U.S. Attorney Jay Clayton stated that the alleged exploitation of confidential information resulted in over $300,000 in illegal profits, undermining market principles and harming ordinary investors.
Investigators also presented evidence suggesting the engineers were aware of the illegality of their actions, citing internet searches made by Stamp for "statute of limitations insider trading" and by Plank's family member for "how is insider trading prosecuted?" The two engineers, residents of San Jose, were arrested and are set to appear in U.S. District Court in California. They face a potential maximum sentence of 25 years in prison if convicted of federal securities fraud.