- Two former VW engineers face charges over a Rivian stock windfall.
- Prosecutors say the pair traded on the secret Rivian joint venture.
- Each man could face up to 25 years if found guilty.
Two former VW Group engineers have been arrested and charged by the US Department of Justice with conspiracy and securities fraud, accused of trading on insider knowledge of the company’s joint venture with Rivian. The pair allegedly moved on the information well before the rest of the market had any idea a deal was coming.
According to Bloomberg, Michael Stamp and Marcus Plank are accused of buying Rivian stock and options after allegedly learning that VW planned to form a joint venture with the EV maker, before any of it was made public. Volkswagen and Rivian announced the deal on June 26, 2024. The pair are alleged to have made more than $300,000.
Read: VW Bets On Rivian To Fix Its Gas Car Software Struggles Too
Once Volkswagen and Rivian announced the deal, Rivian’s stock price jumped 23 percent. Stamp allegedly sold into that surge, netting roughly $250,000, while Plank is said to have made around $50,000. Prosecutors also allege that Plank passed the information to a close family member, who reportedly made about $12,000 trading Rivian shares. The pair have been charged in New York.
“Michael Stamp and Marcus Plank’s alleged exploitation of their employer’s confidential information allowed them to make more than $300,000 in illegal profits,” US Attorney Jay Clayton said. “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently. Insider trading is a crime that New Yorkers want pursued with vigor.”
Facing Serious Prison Time
Prosecutors think the two knew exactly what they were doing. Stamp allegedly searched “statute of limitations insider trading” just eight days before the announcement, and after the deal broke, a member of Plank’s family searched, in German, “how is insider trading prosecuted.”
Bloomberg reports that both Stamp and Plank each face up to 25 years in prison if they are convicted of federal securities fraud.
