German Prosecutors Say Probing Former VW CEO For Fraud

German prosecutors say probing former VW CEO for fraud

FRANKFURT AM MAIN, (Pakistan Point News - APP - 27th Jan, 2017 ) - German prosecutors said Friday they were investigating Volkswagen's former chief executive Martin Winterkorn on suspicion of fraud over the "dieselgate" emissions cheating scandal, dealing a blow to the auto giant's attempts to move on from the crisis. Investigators say they have "sufficient indications" that Winterkorn may have known earlier than he has so far admitted about the cheating, adding his and 15 other Names to a growing list of people facing probes for fraud and false advertising.

Winterkorn is already under investigation for suspected market manipulation related to the scandal. The new evidence comes from the "questioning of witnesses and suspects and the examination of confiscated computer files," the prosecutor's office in the north German city of Brunswick said in a statement. With the 16 names added Friday, there are now a total of 37 people under investigation. Prosecutors added that they had this week searched 28 homes and offices linked to the new names on the list.

Volkswagen admitted in September 2015 to installing so-called "defeat devices" in 11 million vehicles worldwide, after their existence was revealed by the US Environmental Protection Agency. The software caused engines to reduce emissions of harmful nitrogen oxide when they were undergoing regulators' tests. Winterkorn -- known inside VW as "Mr Quality" for his perfectionism -- stepped down the same month, but has always denied any knowledge of the cheating before it became public. US investigators and German media have alleged that VW executives knew of the scandal as far back as July 2015, but decided to say nothing. "That is not the case," Winterkorn told German lawmakers at a parliamentary hearing into the dieselgate affair earlier this month.