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FBI Arrests Volkswagen Executive On Charges Related To Dieselgate (cnet.com)

According to CNET, the FBI has arrested Volkswagen executive Oliver Schmidt over the weekend on charges of conspiracy to defraud the U.S. relating to the ongoing Dieselgate emissions scandal. From the report: Schmidt headed VW's regulatory compliance office in the U.S. from 2014 to March 2015. The FBI's official Criminal Complaint states that during that time VW employees -- Schmidt included -- knowingly installed secret "defeat device" software in 475,000 diesel cars in the U.S., hiding during emissions testing the fact that those cars emitted up to 40 times the legally allowable pollution levels when on the road. The complaint asserts that by knowingly installing this secret cheat software, Schmidt and VW conspired to defraud the U.S. by impairing and impeding the Environmental Protection Agency and violating the Clean Air Act, leading to the arrest on Saturday. Schmidt is due to appear before a Federal Court in Miami on Monday.

61 of 106 comments (clear)

  1. Toothless by Anonymous Coward · · Score: 1, Insightful

    Nothing will come of this. Corporate executives almost always get a slap on the wrist and a scolding, and that's it. Particularly under the next administration, if anybody believes that we will be holding corporations accountable for stuff like this, I have some beach front swampland you may be interested in.

    1. Re:Toothless by Black+Parrot · · Score: 1

      If executives are held accountable, the terriz have already won.

      --
      Sheesh, evil *and* a jerk. -- Jade
    2. Re:Toothless by avandesande · · Score: 4, Insightful

      ... or a banker. The whole financial system collapse in 2007 and banks knowingly laundering money for mexican drug cartels (look it up, I am not kidding) and not one arrest.

      --
      love is just extroverted narcissism
    3. Re:Toothless by avandesande · · Score: 1

      He is not a banker and had nothing to do with the financial collapse. Try again!

      --
      love is just extroverted narcissism
    4. Re:Toothless by Anonymous Coward · · Score: 1

      Bernie Madoff...

      Unrelated; he was running a ponzi scheme, not a bank.

    5. Re:Toothless by Tablizer · · Score: 1

      Smart executives don't leave a written trail. They call in a couple blokes just below their rank and tell them in person what they "must do" do to either get a raise, and/or to not get fired. The boss has "that stare".

      In court it's then word against word, which is rarely enough to convict by itself.

      I've been asked to do slimy stuff multiple times in the work world, unfortunately, and the boss(es) never use email. It seems to happen more often during slumps when people have fewer employment options.

    6. Re:Toothless by Quirkz · · Score: 1

      Wait, are you telling me Slashdot's reliable standby, the car analogy, just broke down?

  2. I'm always amazed when someone will do something by Anonymous Coward · · Score: 1

    for their dumb job that could land them in jail. Talk about screwed up priorities.

  3. Can we stop adding GATE to every scandal? by Spy+Handler · · Score: 5, Insightful

    What you gonna do if Bill Gates is ever involved in a scandal? Call it Gatesgate?

    1. Re:Can we stop adding GATE to every scandal? by Anonymous Coward · · Score: 2, Insightful

      BillGate

    2. Re:Can we stop adding GATE to every scandal? by turkeydance · · Score: 1

      who's this "we", Gordon?

    3. Re:Can we stop adding GATE to every scandal? by The+Grim+Reefer · · Score: 3, Funny

      What you gonna do if Bill Gates is ever involved in a scandal? Call it Gatesgate?

      No kidding. Why do large scandals get "gate" attached to them anyhow? I understand the Watergate thing as it was the actual name of the complex it happened in. But the hundreds of scandals since, that have used it, just seem silly. "Deflategate", "Donutgate[sic]", "Nannygate(1, 2 &3)", "Antennagate", "Pengate", "Nipplegate", and my current favorite, "Pussygate". "Pussygate" sounds more like a chastity belt than a scandal.

    4. Re:Can we stop adding GATE to every scandal? by MightyMartian · · Score: 4, Insightful

      The simple answer is simply that enough English-speaking individuals over the last 43-44 years have decided that "-gate" as a suffix at the end of a word can be used to give a scandal as a memorable name. You do understand, I hope, that human language is not a static construct, that words and even morphemes and other elements of speech evolve over time, old words taking on new meanings, new words being formed either by adoption from other languages or by joining together two existing words, and so forth. So, "-gate" as a suffix has now come to a scandal, and has for over four decades gained sufficient penetration in most English-speaking jurisdictions that I'd say it's now a permanent part of the language.

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      The world's burning. Moped Jesus spotted on I50. Details at 11.
    5. Re:Can we stop adding GATE to every scandal? by Tablizer · · Score: 3, Funny

      If Bill G. breaks through a fence gate using gate-array circuity, then the scandal is called "GatesGateGateGate". Or, G4.

    6. Re:Can we stop adding GATE to every scandal? by Macdude · · Score: 2

      Can we stop adding GATE to every scandal?

      Apparently not.

      --
      "Grab them by the pussy" -- President of the United States of America
    7. Re:Can we stop adding GATE to every scandal? by Gravis+Zero · · Score: 1

      Can we stop adding GATE to every scandal?

      Can we? Yes! WIll we? Well, the origin of it is from 40 years ago so... unlikely.

      What you gonna do if Bill Gates is ever involved in a scandal? Call it Gatesgate?

      It's funny you mention that because Mr. Gates has been involved in about a dozen human trafficking scandals but they fail to report it because can never figure out a working headline.

      --
      Anons need not reply. Questions end with a question mark.
    8. Re:Can we stop adding GATE to every scandal? by The+Grim+Reefer · · Score: 1

      Yes, I understand that English is not Latin and is not a dead language. I just find that in this particular case it's fairly silly. Perhaps it's because I remember Watergate. Or perhaps it's because I'm old enough to remember Watergate.

       

    9. Re:Can we stop adding GATE to every scandal? by scatbomb · · Score: 1

      Or if there was a gate scandal, which itself became a scandal. Gategategate.

    10. Re:Can we stop adding GATE to every scandal? by wardrich86 · · Score: 1

      What if Bill Gates got into a scandal regarding Watergate?

      Bill Gates Watergategate?

    11. Re:Can we stop adding GATE to every scandal? by fbobraga · · Score: 1

      don't forget Pizzagate

    12. Re:Can we stop adding GATE to every scandal? by Tablizer · · Score: 1

      human language is not a static construct, that words and even morphemes and other elements of speech evolve over time, old words taking on new meanings

      Yip, 300 years from now people will say, "I think that planet just trumped their government all up."

    13. Re:Can we stop adding GATE to every scandal? by dcw3 · · Score: 1

      Billy Bath Gate

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      Just another day in Paradise
    14. Re:Can we stop adding GATE to every scandal? by EnsilZah · · Score: 1

      Well, at least it's not G8...

  4. Damn, they're going after the right guy by drew_kime · · Score: 3, Interesting

    Here's hoping this leads to some actual changes.

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  5. Re:Why is this story worthy? by drew_kime · · Score: 4, Informative

    Why is this worthy of Slashdot? This is just an executive being busted by the FBI.

    Because the exec was responsible for validating code that was found to not be doing what he said it did.

    Do you have anybody in your company doing QA? Or auditing code? Think they might be interested in this?

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    Nope, no sig
  6. Re:Why is this story worthy? by DogDude · · Score: 3, Insightful

    Speak for yourself. I find this, as a former developer, to be very interesting. People aren't generally arrested over bad programming. I couldn't care less about yet another review of whatever the latest el-cheapo hobbyist gadgets are.

    --
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  7. Re:Why is this story worthy? by MightyMartian · · Score: 4, Interesting

    I agree. Since this boils down to someone writing software whose explicit purpose is to cheat on government-mandated tests, I'd say it's a very interesting technical story that involves a scenario that may play out in many areas of development. Being a programmer doesn't mean moral, ethical and legal considerations cease to exist.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  8. Re:Why is this story worthy? by PopeRatzo · · Score: 1

    I find this, as a former developer, to be very interesting. People aren't generally arrested over bad programming.

    Was it bad programming or was it programming that performed exactly according to specifications?

    --
    You are welcome on my lawn.
  9. Re:Who cares? by MightyMartian · · Score: 1

    I think anyone who cares that the laws of the land are enforced cares. If emissions standards are set, and someone cheats on those standards, then they should be punished. Maybe we don't get the top people involved, but is that an argument against anyone being prosecuted?

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  10. In all fairness.. by fluffernutter · · Score: 3, Interesting

    I expect they will be arresting Elizabeth Holmes as well? Or is this an American philosophy arrest, where defrauding the health of people isn't nearly as offensive as financially damaging defrauding.

    --
    Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    1. Re:In all fairness.. by ClickOnThis · · Score: 1

      The investigation into Holmes and Theranos is still ongiong. I suppose it's not yet clear whether she and the company were malicious or just sloppy.

      She has been hit with a two-year ban on owning or operating a lab.

      However, in the case of Volkswagen, there's no question that they wrote software designed to bypass emission tests.

      --
      If it weren't for deadlines, nothing would be late.
    2. Re:In all fairness.. by fluffernutter · · Score: 1

      Is there a valid question of whether she knew what was going on, or just one that might not be provable in court?

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
  11. Is Oliver Schmidt the top of this criminal tree? by mmell · · Score: 1
    The FBI has arrested Volkswagen executive Oliver Schmidt . . . is he the highest ranking executive who demonstrably knew what was going on? Anything less amounts to convicting a torpedo for doing a contract hit, or convicting the capo that made the arrangements, but never going after the boss who's actually getting people killed.

    And - no - this is not hyperbolic. That's my air those VW's are polluting. I've often been asked if I would just stop breathing and my answer has always been "no, thank you". I'm really addicted to breathing. It's a shame I can't get the same high-quality air I used to get last century.

  12. VW cost investors $80 billion, more than Enron by raymorris · · Score: 1

    To the extent that banker types get their way, the VW execs will be in prison for a long time. Prior to the scandal, VW was trading at over $200/share, as high as $250. After the information came out, it dropped to $100. That's about $80-$100 billion or so that investors lost.

    That's a bit more than the losses from Enron. Enron executives got prison sentences of up to 24 years (later reduced to 14 years).

    The damage to investors side of the issue is on top of the EPA / environmental crimes.

    1. Re:VW cost investors $80 billion, more than Enron by avandesande · · Score: 4, Informative

      2007 financial crisis cost 22 trillion dollars, nobody was jailed.

      --
      love is just extroverted narcissism
    2. Re:VW cost investors $80 billion, more than Enron by rahvin112 · · Score: 1

      It's extremely difficult to prosecute banking crime that didn't involve direct theft. The issue is often abstract enough, often involving complex math and difficult economic concepts, in addition the evidence is often difficult to interpret often involving forensic accounting which again involves complex mathematics. Finally the defendant's in the cases are often wealthy with significant funds available for good lawyers such that the prosecutors have a very hard time convincing a jury of guilt.

    3. Re:VW cost investors $80 billion, more than Enron by glenebob · · Score: 1

      White-blower hostility was more of a Clinton administration thing.

    4. Re:VW cost investors $80 billion, more than Enron by alexo · · Score: 1

      Even more evidence that the legal system is broken by design.

  13. "If"...? Are you too young too remember...? by ffkom · · Score: 1

    There were plenty of scandals Bill Gates was involved in: https://en.wikipedia.org/wiki/...

  14. Florida Man reference? by TodPunk · · Score: 1

    How did we miss this Florida Man opportunity!?

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  15. Memo to FBI by LifesABeach · · Score: 2

    About fucking time. How the bank robbers at Wells Fargo?

  16. Re:Is Oliver Schmidt the top of this criminal tree by vux984 · · Score: 1

    It's a shame I can't get the same high-quality air I used to get last century.

    If you could have their air, but also had to live with their technology and medicine too would you still take the trade?

    Meanwhile, depending on where you live, 100 years ago was pretty filthy... London air quality in 1917.... sulpher dioxide and soot from the smokestacks... and that was on a good day... 100 years ago puts you right in the middle of World War I ... a little soot in your air would be right pleasant compared to the 50,000 tons of chlorine, phosgene, mustard, and other gases that some of your 100-year-ago contemporaries would have been dealing with.

    Meanwhile, smog and acid rain, are on the decline in North America thanks to environmental regulation and pollution controls... and with the mass market arrival of electric city air quality is actually poised to get even better in the future.

  17. Re:Why is this story worthy? by 4wdloop · · Score: 3, Interesting

    I do not see anybody 'down in the trenches' just out of the blue or love for the job decided to do it single-handed. I would be surprised any of the softies there realized this is very illegal. Ethically perhaps they may have doubts quickly resolved by their bosses.

    I'd expect that in big corporation, like VW, the programmers are just gears in the machine. I am one for sure. They were told to improve test results and performance results. Sbdy (likely team+1/2 levels of mgnt) there decided to optimize these two cases separately hence detecting each use case. They even consulted this with VW legal team and upper mngmnt, got approval and went ahead. Than they all collected the bonuses.

    If there is not written evidence for all of these then their document retention policies are "well tuned" albeit since they must be ISO9xxx certified they must have something left in the decision chain. Hence Schmidt was charged with conspiring to fraud, evidence must exist he knowingly allowed it as he's not charged with negligence of duties of sorts (AINAL).

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    4wdloop
  18. Re:Why is this story worthy? by FatdogHaiku · · Score: 2

    Performance wise it was very good software, it "knew" when it was in a test environment and behaved in a manner totally at odds with normal day to day operation. Sadly for them, researchers began a study on emissions discrepancies between European and US models of vehicles, Portable Emissions Measurement Systems showed totally different values from test rig results and the rest is yet to be played out.

    They would have gotten away with it if it hadn't been for those pesky kids at the International Council on Clean Transportation!

    https://en.wikipedia.org/wiki/Volkswagen_emissions_scandal

    --
    You have the right to remain sentient. If you give up the right to remain sentient, you will be elected to public office
  19. 35 bankers in prison, but yeah the Obama admin vs by raymorris · · Score: 3, Informative

    Not quite true that *nobody* was jailed. Here are 35 bankers sent to prison:

    http://money.cnn.com/2016/04/2...

    Also some who didn't go to prison did get fines over over $100 million.

    Compared to the 1980s S&L crisis, there were certainly fewer prosecutions. One career prosecutor who is knowledgeable about both says that one reason for that is the the Obama administration, unlike the Reagan administration, was hostile toward white-blowers who could have enabled prosecution.

  20. typo: whistles-blowers by raymorris · · Score: 2

    Where my post says "white-blowers", that should be "whistle-blowers". In the 1980s, whistle-blowers gave leads to investigators and testified against bosses. The Obama administration has of course been hostile to whistle-blowers.

    1. Re:typo: whistles-blowers by Coren22 · · Score: 1

      It was totally a freudian slip, I am sure!

      Wouldn't Monica Lewinski be a white-blower?

      --
      APK likes to ask for responses to the same things over and over. Maybe he just likes the responses?
  21. Re:I'm always amazed when someone will do somethin by slashrio · · Score: 1

    Guaranteed loss of job vs small chance of landing in jail.

    --
    "Trump!!", the new Godwin.
  22. Re:Why is this story worthy? by Ungrounded+Lightning · · Score: 1

    If there is not written evidence for all of these then their document retention policies are "well tuned" albeit since they must be ISO9xxx certified they must have something left in the decision chain.

    ISO9xxx isn't about documenting a decision chain.

    ISO9xxx is about insuring that the company can build the same thing repeatedly, despite things like personnel with critical knowledge leaving the company or dying, and being replaced by ignorant newbies.

    ISO9xxx is perfectly happy if the instructions for a step of building widget X are written on a designated whiteboard in a designated cubicle, or sitting in a basket on top of a designated file cabinet, as long as this is documented properly so it can be rediscovered the next time they need to do a run of widget X.

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  23. Re:It make no sense to pin the blame on one man. by DreadCthulhu · · Score: 1

    The law says auto makers are specifically not allowed to have a "defeat device" (like this software) that causes the car to run differently when being tested.

  24. Arrest? by manu0601 · · Score: 1

    Can't they just summon him? Arrest make sense for dangerous people, and this one is not going to harm anyone over the weekend.

  25. Re:Who cares? by ClickOnThis · · Score: 1

    Looking at the pattern of your posts I sincerely hope that you get in touch soon with someone who cares about you.

    Obsessive-Compulsive Disorder can be cured.

    --
    If it weren't for deadlines, nothing would be late.
  26. Sacrificial goat by JustNiz · · Score: 1

    Just one guy? Obvioulsy a token sacrificial goat, probably set up by VW themselves. You can't tell me the whole of the VW upper management didn't know about and agree to this.

  27. Hillary didn't like white blowers by raymorris · · Score: 1

    I think it was Hillary who said a lot of nasty things about some white blowers.

  28. Too late by Shane_Optima · · Score: 1

    There's already been a Gategate, although as the redirect shows I think it was more commonly known as "Plebgate".

    It may be etymologically dumb, but it's a handy bit of syntax. Sort of like "-aholic" for being addicted to something other than alcohol.

  29. Re:Is Oliver Schmidt the top of this criminal tree by Anonymous Coward · · Score: 1

    And - no - this is not hyperbolic. That's my air those VW's are polluting.

    The affected VWs produce no more NOx than contemporary diesel cars and their particulate emissions are exceptionally low. This is a regulatory compliance issue, not an air quality issue.

    It's a shame I can't get the same high-quality air I used to get last century.

    At no point in the previous century was the air in the populated parts of the West as clean as it is now.

  30. Re:Why is this story worthy? by AmiMoJo · · Score: 2

    Take a look at page 64 of this presentation (PDF): http://roma.faster-it.de/temp/...

    Some guys decompiled the firmware and found the tables that control the engine modes, based on time and distance travelled. Note how the very narrow low emissions bands match the European test cycles perfectly.

    It was clearly very deliberately, very carefully planned, must have required extensive testing and couldn't have been done without the assistance of Bosch who designed the control unit.

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  31. Re:I'm always amazed when someone will do somethin by alexo · · Score: 1

    I highly doubt that Volkswagen executives struggle to feed their families.

  32. Re:I'm always amazed when someone will do somethin by dcw3 · · Score: 1

    for their dumb job that could land them in jail. Talk about screwed up priorities.

    Obviously you have never had a family depending on you.

    It's easy for a young child like you to judge others.

    A man understands that people sometimes have to do things they would not otherwise do because circumstances force it.

    Obviously, you've been raised by unethical parents. It's easy for you to rationalize your bad behavior instead of getting off your ass and finding a legal/moral solution. Stop blaming others for your problems, and grow up.

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  33. Re:Wisdom follows, pay attention! by dcw3 · · Score: 1

    Sure, let's just punish the shareholders instead of the jackasses who were actually responsible. If Merkel is dumb enough to start a trade war over that, then so be it.

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  34. For you AC Whiners by dcw3 · · Score: 1

    Plenty of ACs have posted here that the U.S. is only going after non-American firms. Well, here's your red meat...

    http://abcnews.go.com/Business...

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