Two Volkswagen engineers charged with insider trading tied to Rivian JV

Author: Kirsten Korosec Read Time: 3 min

The U.S. Department of Justice has charged two Volkswagen engineers with securities fraud for an alleged insider-trading scheme connected to the German automaker's joint venture with Rivian.

Indictment Details

The indictment, unsealed Friday by the U.S. District Attorney for the Southern District of New York, alleges that Michael Stamp and Marcus Plank made more than $300,000 by using confidential insider information. According to the charges, Stamp and Plank bought Rivian stock and options after learning that the EV maker and Volkswagen planned to form a joint venture — internally codenamed "Project Climb" — but before any public announcements were made.

Background on the Joint Venture

Rivian and Volkswagen announced plans for the joint venture on June 25, 2024, which would focus on developing electric vehicle architecture and software. Volkswagen initially committed to invest $5 billion in Rivian, with capital released as the companies achieved certain milestones. The joint venture has since grown to $5.8 billion, and Volkswagen is now Rivian's largest shareholder.

Stock Price Impact and Alleged Profits

Rivian's stock price rose 23% following the initial announcement in June. The indictment alleges that Stamp and Plank then sold their Rivian positions:

• Stamp realized approximately $250,000 in profits
• Plank realized approximately $50,000 in profits
• Plank's close family member realized approximately $12,000 in profits

Official Statement

U.S. Attorney Jay Clayton said in a statement Friday:

"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. 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. Its effects ripple through the financial system, harming ordinary investors and eroding public confidence. Today's charges underscore the commitment of this Office and our law enforcement partners to protecting the integrity of our markets and holding accountable those who choose to violate the law."

Evidence of Knowledge

Investigators allege the two engineers understood their actions were illegal. According to the indictment:

• Eight days before the joint venture was announced, Stamp searched: "statute of limitations insider trading"
• Plank's close family member searched, in German: "how is insider trading prosecuted?"

Arrest and Legal Proceedings

The pair, who both live in San Jose, were arrested Friday and will appear in the U.S. District Court for the Northern District of California. The case has been assigned to U.S. District Judge Katherine Polk Failla. Stamp and Plank face up to 25 years in prison if convicted of federal securities fraud.

Company Responses

• Rivian declined comment.
• Volkswagen issued an email statement: "The action is focused on specific individuals and does not involve allegations against the company. As this is an ongoing matter, we are unable to comment further."

This article was updated to include Volkswagen's comment.