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Legal Loophole Offers Volkswagen Criminal Immunity
An anonymous reader writes: According to the Wall Street Journal (paywalled) a loophole in the 1970 Clean Air Act could make it impossible for U.S. prosecutors to subject Volkswagen to criminal charges over its use of standards-dodging 'defeat devices' in its emissions-testing software. Prosecutors are now reported to be considering alternative methods, including (considerably lesser) charges that Volkswagen lied to regulation authorities.
None of which explain what exactly is the loophole.
"There's a loophole there" - is all I could get. the WSJ article is paywalled.
Any ideas? IANAL so, to me, it's a mystery.
...gis sdrawkcab (usually not responding to ACs; don't bother posting as AC)
Who's worming their way out?
Sounds like the prosecutors are trying to make a case that won't get thrown out.
You can't just make up law as you go along because it's morally wrong.
If the rulebook says "When we plug in our testing machine, your car needs to be emitting X, Y and Z", then they were totally within the rules.
part of the deal to get the CAA passed was to eliminate criminal consequences for the car manufacturers. it was ALREADY known.
So charge them with fraud if they can't be charged under the clean air act. They deliberately misrepresented their product to customers to make greater profits, seems like a textbook case of fraud to me. Of course, since they are a large corporation they will probably skate with a small fine. You get the government you voted for, I hope all the people who vote for the corporatists each election are happy with the outcome.
Enigma
If an individual did this, they would have manufactured a list of charges a mile long by now based on the craziest of legal theories.
Here, fraud presents itself quite naturally and they can't seem to find it.
Well it already got the CEO of the company to resign. I'm sure he's rich and not going to lose much, but he presumably didn't want to be forced to resign and go into retirement.
I suppose worse could have been done to him, but its hard to say that this had zero effect on upper management.
I'm not sure about the precise legal definition of racketeering, but the Wikipedia definition of a racket is:
That sounds a lot like what Volkswagen did to me. And RICO is often used to go after organizations that weasel out of responsibility for their misdeeds through loopholes. And, of course, there's the second part: Corrupt Organizations. And that fits Volkswagen to the tee... corrupt as hell and rotten to the core.
Imagine all the people...
And not because it lets the car companies get away with something.
The prosecutor is considering prosecuting Volkswagen for "lying to the authorities". "They lied to the authorities" is a catchall crime that the government often brings when it finds itself unable to convict someone for an actual crime. This is a bad, bad, thing because you can't just refuse to speak to the government, and pretty much anyone is going to say something when questioned by the government that can be spun as a "lie", even if they just forgot, were misheard, or told an actual lie but one that has no bearing on the case.
The people cheering for this are really cheering for the idea that the government can put anyone in jail at a whim, because that's what the crime of "lying to the government" amounts to. It makes a mockery of the idea of a fair trial, and the fact that in this case the government decided to use this trick on a deserving target doesn't make it any less horrible.
Who's worming their way out?
Sounds like the prosecutors are trying to make a case that won't get thrown out.
You can't just make up law as you go along because it's morally wrong.
You could send them to jail if you wanted to. Fraud, false statements to government, criminal conspiracy, etc...
Just maybe not under the clean air act.
Here, fraud presents itself quite naturally and they can't seem to find it.
Perhaps they are worried that the US government could be charged with fraud too since it seems they passed an act which they said would make it illegal for car manufacturers to make highly polluting cars but which, it appears, does nothing of the sort.
Congress has immunity from lying. No, really. https://en.wikipedia.org/wiki/...
I heard he's getting a $32M pension. Poor guy, they sure made an example out of him.
The classical purpose and function of US government regulatory agencies is to indemnify the industries which they are charged with regulating from any legal repercussions resulting from egregious and outlandish acts of greed and irresponsibility.
This is just another case.
a legal loophole?
found by corporate lawyers?
I'm shocked. SHOCKED.
I'm going to go home, re-evaluate my life, and stop selling death sticks.
I've fallen off your lawn, and I can't get up.
But section 203(a)3(B) of the Clear Air Act is the one that mentions defeat devices.
and the punishment for violating that,
SEC. 205. CIVIL PENALTIES. .....
any person who violates section
203(a)(3)(B) shall be subject to a civil penalty of not more than
$2,500
No criminal charges, only $2,500 per car.
When the EPA tested the vehicles they did not assume that there would be this level of overt lying and manipulation. There have been other instances of bad behavior in the past, but these were caught in the normal course of events. This was deliberately intended to evade regulations, and VW has already admitted as much. So if management admits they were breaking the rules, how can you try and blame the EPA?
If the EPA or other government agencies did their job correctly, they would start with the assumption that the companies they deal with are run by degenerate psychopaths who will do anything, up to and including mass murder to make a buck. That certainly describes Ford and their failing key ignition switch, which by Ford's own estimate killed around 200 people. It is certain that the death toll is higher; given the money at stake, why should they stop lying now if they can get away with it? And previous to that there was Toyota and the cover-up of their sudden acceleration problem. So it's not like WV is that exceptional.
But when the regulators try and do a thorough job then business interests start squealing like stuck pigs and scream about how "ebil gomment is distroying the free interprize". Then they go out and buy a few more congress critters, and keep on lying and stealing for profit. And asshats like you are always there to cheer them on. Too bad you didn't die in a defective Ford or Toyota; it might have taught you something about how the world really works.
Why is Snark Required?
I wonder if anyone dares to put this into perspective - i.e. in a comparison with Wall Street practices. Last time I heard, bonuses and pensions over there were at least one order of magnitude higher, and deaths (like suicides) following crises like Lehman Brothers and their followers were actually countable, not dubious statistical numbers.
Also, Mr Winterkorn is still facing charges in Germany, which could lead to his imprisonment (large-scale fraud). I haven't heard from many bankers going to jail.