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Volkswagen Engineer Pleads Guilty in US Diesel Emissions Probe (fortune.com)

A Volkswagen AG engineer on Friday pleaded guilty and agreed to cooperate in the Justice Department's probe into the German automaker's diesel emissions scandal -- the first person charged by U.S. authorities in the environmental probe, reports Reuters. From the report:James Liang, who has worked for VW VLKPF since 1983 and was part of a team of engineers who developed a diesel engine, was charged in an indictment made public on Friday with conspiring to commit wire fraud and violating U.S. clean air laws. The 62-year-old engineer from Newbury Park, Calif., appeared in U.S. District Court in Detroit on Friday and entered into a plea agreement that includes his cooperation with the government in its investigation. The indictment says Liang conspired with current and former VW employees to mislead U.S. regulators about the software that allowed the automaker to evade American emissions standards.

54 of 110 comments (clear)

  1. scapegoat much? by Anonymous Coward · · Score: 5, Insightful

    WTF? why does some engineer get thrown under the VW bus?

    1. Re:scapegoat much? by boristdog · · Score: 4, Insightful

      C-level motto: "Always have a patsy on hand."

      I have had management try to make me into a patsy before. Always save your emails. Don't do anything unless you have it in writing.

    2. Re:scapegoat much? by umghhh · · Score: 1

      Maybe he did not have money for good lawyers and accepted the deal to make sure he goes out of jail before he dies? For a prosecutor this makes goig after bigger fish much easier. US legal system is just crap - went quite far from the origins.

    3. Re:scapegoat much? by 31415926535897 · · Score: 1

      but could be a Democrat Presidential Nominee... if he happened to be a natural born US citizen.

      Eh, they can probably get around that too these days.

    4. Re: scapegoat much? by Immerman · · Score: 1

      A) Sadly true. It was still his own choice to commit the crime though, he could have found a new job instead.
      B) Can you prove he wasn't? The idea is to drag him down with you to lessen the punishment for your own guilt. He is of course free to do the same thing further up/across the hierarchy.
      C) Why would you rely on the company email server to retain blackmail/plea-bargain material for you?

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    5. Re:scapegoat much? by Immerman · · Score: 1

      >Fines don't discourage anything.

      Well, not at a management level, not the way they're implemented in the US. If fines for such things were, say, 50% of your net worth things might be different.

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      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    6. Re:scapegoat much? by Sperbels · · Score: 1

      Possibly a paid patsy.

    7. Re:scapegoat much? by Immerman · · Score: 1

      You might be right, and if we ever see management paying more than pocket change in fines I'll concede the point. First we'll have to start actually convicting them though.

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      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    8. Re: scapegoat much? by ShanghaiBill · · Score: 2

      Prosecutions always start at the bottom. Prosecutors offer plea deals to get subordinates to testify against their bosses, and the first guy to defect gets the best deal. They will work their way up the food chain.

    9. Re:scapegoat much? by ausekilis · · Score: 2

      I learned an old adage some years ago: "Don't fix the problem. Fix the blame."

      This guy is near retirement, will likely only serve a commuted sentence due to age and good behavior, and probably have a nice golden parachute.

    10. Re:scapegoat much? by jellomizer · · Score: 1

      Because the Engineer is a high enough position of have responsibility for what they do. However not high enough if convicted to show a systemic problem in the organization.

      I have left jobs, because I had found myself going down a slippery slope, a minor tweak here, cut a corner, tell a little white lie there, over inflate an estimate there... So I usually start looking for new work when I realize I am getting to a point where I see that I am becoming what I hate.

      However for many people they may not have the same moral compass, or a different point where they do a self evaluation. Also sometimes if they are rewarded well for such bad behavior the rewards may outweigh the risk.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    11. Re:scapegoat much? by OwenW4rd · · Score: 1

      You know the old saying: "Where there's soot there's combustion."

    12. Re:scapegoat much? by mwvdlee · · Score: 1

      I wonder how much money he's being paid to take the fall.

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    13. Re:scapegoat much? by tnk1 · · Score: 2

      If I was a multimillionaire, 90% of my net income would suck, but I'd still probably be rich or at least upper middle class.

      If this guy got nailed with 90% or even 50% of his net income, he'd lose his house.

      Fines like this cannot just be a percentage, they need to match the circumstances.

    14. Re: scapegoat much? by Anonymous Coward · · Score: 1

      As well as NoX.

    15. Re:scapegoat much? by GuB-42 · · Score: 3, Insightful

      Text files that are timestamped and stored on a server, often with multiple copies.
      I don't know how often e-mails are used in court but if you don't have an original signed document, this is probably the next best thing.

    16. Re:scapegoat much? by thinkwaitfast · · Score: 1
      There will be no going to jail for you if someone asks you to do something illegal, only if you go through with it and do it.

      What To Do If Your Boss Asks You To Do Something Unethical or Illegal

    17. Re:scapegoat much? by jlbprof · · Score: 1

      $190 million is chump change, cost of doing business. They made billions off of this fraud.

      --
      I go out of my way to complicate the simple things, so that I can simplify the complicated things.
    18. Re:scapegoat much? by thinkwaitfast · · Score: 1

      I was paid a lot of money as an engineer and knew a couple that could be considered wealthy even, though they'd been in the business for 50 years and owned their own firms. Maybe just the bad engineers don't make any money.

    19. Re: scapegoat much? by Z00L00K · · Score: 1

      The choice is to do the job or get fired with a bad reputation. Good luck finding a decent job after that.

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
    20. Re:scapegoat much? by Rakshasa+Taisab · · Score: 2

      The guy is 62 years old, near retirement.

      Most likely there's been agreements made behind closed doors between VW and US prosecutors; they guy gets some kind of deal that involves him not ever going to jail, he also gets some kind of 'severance/pension' thing for his part in this theater.

      A 'guilty' person has been found, what VW did wrong... or the story they agreed on... is now in the legal system and VW will be made to pay their (pre-arranged) dues. And _EVERYONE_ is now happy and the air will be cleaner.

      --
      - These characters were randomly selected.
    21. Re: scapegoat much? by fnj · · Score: 1

      Good luck finding a decent job after you've picked up a criminal record.

    22. Re:scapegoat much? by Immerman · · Score: 1

      Which is why I said worth, not income. What's the combined value of your house, your yacht, your stocks, your retirement portfolio, etc.? You lose half of that.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    23. Re:scapegoat much? by Cederic · · Score: 1

      Hmm. Touch my pension and I might as well kill you. There's no point living through the shit without the hope it will end one day.

      Take away that hope, and I may as well take away the living. But not without revenge first.

    24. Re: scapegoat much? by Anonymous Coward · · Score: 1

      I'm a lawyer...never seen a Rolex and the only blowjobs I get are for good behavior from my wife. I think you vastly overestimate an attorney's earning power and prestige.

    25. Re:scapegoat much? by Immerman · · Score: 1

      Hey, you chose to risk it when you committed the crime.

      --
      --- Most topics have many sides worth arguing, allow me to take one opposite you.
    26. Re: scapegoat much? by Z00L00K · · Score: 1

      I'd take a criminal record for something the company is responsible for rather than an employer record where I'm listed as untrustworthy if I have to choose. The latter blocks you from every job out there.

      What you are convicted for actually matters for some employers - breaking the law upon command from a superior or not matters a lot. Even if the command was not written down.

      --
      If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  2. Indictments please climb the corp. ladder by Tesen · · Score: 2

    Hopefully there is paperwork to show management had a hand in this; this kind of culture needs to stop. Mr. Engineer, wink... bonus...wink... standards... wink.

  3. How many counts? by jaymemaurice · · Score: 4, Insightful

    So if he is responsible for the creation "defeat device", is he responsible for the installation on every vehicle sold in the US?

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    120 characters ought to be enough for anyone
    1. Re:How many counts? by tnk1 · · Score: 1

      Probably not, but on the other hand, blame could be fairly limited in scope. If I programmed some code with a root kit in it, my boss wouldn't need to be involved for it to be distributed to all my customers, I'd just need to make sure it was properly hidden so it made through the certification process without triggering any extra review.

      And we assume that everyone at VW would have known about it. Its usually a lot more murky than that. Usually some middle manager needs to get a raise or make a target, and directs his engineers to do something. The manager's boss is presented with the situation and approves it, even though he didn't strictly order it. Or alternately, the big boss awards bonuses without really looking that closely at it. The Engineer and Manager makes a bonus and the Executives get their claim. At least until it is discovered.

      That doesn't mean the Execs didn't order it, and more to the point, they may well have failed in their oversight responsibilities or they may have encouraged an atmosphere of regulatory avoidance or contempt for certain countries' (*cough* US EPA *cough*) regulation.

      It will be interesting to see how it pans out.

  4. Yeah, we all know it was a rogue engineer by hsmith · · Score: 1

    No one from top management pushed this down and forced their hands. He was just trying to save the company money! Always keep a paper trail.

  5. Hooray for scapegoats by ErichTheRed · · Score: 2

    I wonder what's actually happening here. No one in a high-profile civil case pleads guilty unless they have a real reason to. Is VW paying his family an exorbitant sum of money through a back-channel?

    There's no way an engineer comes up with a scheme like this on their own. I know for myself that I'd be too much of an honest guy to go along with that. Yes, I know that makes me an idiot. But management is always involved in things like this, or at the very least is willfully blind. German companies are very meticulous, so I'm sure they have the exact email, timestamped to the millisecond, showing the management team telling the engineers to put the defeat device in.

  6. Re:I hope he gets compensated for taking the fall by umghhh · · Score: 1

    VW has indeed a history of taking care for fallen children look at Mr. Harz and listen to the silence.

  7. That was Wells Fargo... by Ellis+D.+Tripp · · Score: 2

    http://www.npr.org/2016/09/09/...

    With all the corporate crime going on, it is easy to get your scumbags mixed up....

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  8. VW's President is Responible for His Company by BrendaEM · · Score: 1

    Why throw this engineer under the bus? He was likely following orders.

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    https://www.youtube.com/c/BrendaEM
    1. Re:VW's President is Responible for His Company by Zocalo · · Score: 1

      A bit borderline on the Godwin there, aren't we? :) Anyway, I think the real reason for this is that he knew he was likely going down and went for the plea deal instead. Assuming that he can name and shame enough of the C-level execs who were also involved he might at least get a stay in white-collar jail with a chance of getting out in a reasonable timescale, assuming he goes down at all. They wouldn't have offered the deal in the first place if they didn't think he had some dirt on the bigger fish to parley it for, so for his sake he'd better have filed all those emails safely away...

      --
      UNIX? They're not even circumcised! Savages!
  9. He needs the jail / prison health care plan till65 by Joe_Dragon · · Score: 1

    He needs the jail / prison health care plan till 65.

  10. Re: VW Engineer by Anonymous Coward · · Score: 2, Informative

    Meanwhile, the methane leak in Los Angeles last year caused more pollution than all of the affected VW's could ever hope to create in their lifespan.

  11. So what? by argStyopa · · Score: 2

    ...I'll believe someone's getting punished when SENIOR MANAGEMENT is seeing jail time or fines in excess of several years' pay.

    Hauling one nearly-retired engineer up in the dock doesn't mean shit.

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    -Styopa
    1. Re: So what? by argStyopa · · Score: 1

      You can't seriously believe that, can you?

      You're asserting that some middling engineer-manager came up with this strategy entirely on his own? Failed to share it with his management?

      Yeah.

      --
      -Styopa
    2. Re: So what? by argStyopa · · Score: 1

      I don't think you really understand how corporations work.

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      -Styopa
  12. Always starts at the bottom by sjbe · · Score: 4, Insightful

    WTF? why does some engineer get thrown under the VW bus?

    Because they are the easiest to get to. Hopefully they'll work their way up the ladder. It's almost always hardest to get to the guys at the top and you usually have to start at the bottom and work up. He'll probably get a lighter sentence in exchange for giving up a bigger fish and then the bigger fish will get a deal to give up the next guy up the food chain. Eventually you get to the top but it takes a while and a lot of work.

    1. Re: Always starts at the bottom by sjbe · · Score: 1

      We're talking about someone who was complicit in a fraud. I see no value in sympathy. They could easily have refused to be a part of this crime.

  13. Definitely not just one person by sjbe · · Score: 1

    There's no way an engineer comes up with a scheme like this on their own.

    Even if he did there is no way to keep it a secret for long and it would be virtually impossible for management to not know about it. But engineering is pretty much a team sport with a product this complex and there would be no way it would be one rogue engineer. It simply doesn't work that way.

    German companies are very meticulous, so I'm sure they have the exact email, timestamped to the millisecond, showing the management team telling the engineers to put the defeat device in.

    More than likely this is true. It shouldn't be too hard to work their way up the food chain if the investigators are sufficiently motivated and funded.

  14. eat each other by Anonymous Coward · · Score: 1

    US pushing Volkswagen case, EU pushing Apple case. NIce!

  15. Where's Lee Majors? by HumanWiki · · Score: 1

    I might fall from a tall building,
    I might roll a brand new car.
    'Cause I'm the unknown stuntman that made Redford such a star.

    For some reason, I've got The Fall Guy stuck in my head now.

  16. How does a VW engineer cheat for Audi and Porsche? by BenJeremy · · Score: 1

    This scandal goes all the way up. The cheat crossed over to other badges, which are calibrated by entirely different teams. At the very least, some director who sits above all the badge bosses was involved in perpetrating this fraud.

    Calibration engineers had to work on, and test, two sets of calibrations - the "cheat mode" values and the standard values. Somebody had to direct them to do this. This isn't just a Degiorgio being lazy and signing off on crap parts to clear his worklog - this is a systematic effort to spread the "cheat device" software across ALL of the brands. Tagging Liang as the primary perpetrator is like saying some Air Force Captain somehow managed to cause the Air Force, Navy, and Army to launch a nuclear war - Liang simply doesn't have the power to get that software calibrated on the other badges.

    I'm guessing the engineer's family is being either well taken care of, or worse, threatened, to make him take responsibility.

  17. Re:Government regulation at work by Anonymous Coward · · Score: 1

    It was discovered by researchers at an American university, not regulators. And the diesel standards in the Sates are much stricter than the EU.

  18. Re:I hope he gets compensated for taking the fall by tnk1 · · Score: 1

    I actually disagree.

    There are plenty of situations that could be torpedoed by the engineer refusing to do the work. Engineers are not disposable.

    Do not underestimate your ability to say "No" to something that is obviously illegal. You will end that shit right there in most cases. Especially when up against your own lower level boss who is probably less than pleased himself about having to ask you to do it.

    And do not believe for a second that there are not engineers who will collaborate because they want to, or because they are rewarded, and not because of pressure or fear. Amorality and criminality are not exclusive traits for management.

  19. Re:Government regulation at work by Anonymous Coward · · Score: 1

    Diesel emissions standards are much stricter in the US than elsewhere. Normally this would be a good thing, but in the US' case it just smacks of the same old protectionism that the US car makers have been lobbying for since they realised most other countries make better cars than they do. Ever notice how you hardly ever see a US-made family car outside the US?

  20. just makes me wonder... by JustNiz · · Score: 1

    How much VW are paying him to take the fall...

  21. Re: VW Engineer by arvindsg · · Score: 1

    Point being issues deserve attention in media in proportion to their effects.

  22. Re:VW Engineer by Joce640k · · Score: 1

    Call me when the manager that told him to do it gets locked up.

    THAT will be news.

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    No sig today...
  23. Re: Government regulation at work by Anonymous Coward · · Score: 1

    Firstly, soot standards are stricter in Europe than in the US. It is NOx where the US is (much) stricter. Secondly, the scandal has nothing to do with fuel efficiency and it changes nothing about the fact that diesel engines are more fuel efficient and use a fuel that costs less energy to produce. Finally, modern diesel engines produce fewer volatile hydrocarbons and ultra-fine particulates than petrol engines, both of which are known to cause cancer, as well as less carbon monoxide. There is often an order of magnitude difference.