Two former Volkswagen Group engineers have been arrested and charged with conspiracy and securities fraud, accused of trading on insider information about the company's joint venture with Rivian.
The US Department of Justice alleges that Michael Stamp and Marcus Plank bought Rivian stock and options after learning of the planned partnership, before it was publicly announced.
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Alleged Insider Trading Scheme
Volkswagen and Rivian announced their joint venture on June 26, 2024. Following the announcement, Rivian's stock price surged 23 percent.
Stamp allegedly sold shares during that surge, netting roughly $250,000, while Plank is said to have made around $50,000.
Prosecutors also claim Plank passed the information to a close family member, who reportedly made about $12,000.
In total, the pair are accused of making more than $300,000 in illegal profits.
“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.
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“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.”
Prosecutors point to incriminating search history. Stamp allegedly searched “statute of limitations insider trading” just eight days before the announcement.
After the deal broke, a member of Plank's family searched, in German, “how is insider trading prosecuted.”
Both Stamp and Plank each face up to 25 years in prison if convicted of federal securities fraud.
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The charges were filed in New York.
