Volkswagen engineer indicted in emission scandal

A Volkswagen engineer pleaded guilty to conspiring to defraud US Government, commit wire fraud and violate the Clean Air Act. He has also agreed to co-operate with federal prosecutors investigating the carmaker’s conduct, which could open the door to possible charges against other employees.

The 62-year-old engineer James Robert Liang, currently a California resident, worked for Volkswagen’s diesel development department in Wolfsburg, Germany, from 1983 to 2008. He is the first person to face criminal charges in connection with the diesel emissions cheating case.

The indictment says Liang worked as a diesel development engineer in Wolfsburg, Germany, from 1983 to 2008, where he played a big role in developing the AE 189 2.0-litre diesel engine, an engine that was expected to pass strict U.S. emissions regulations. He moved to the U.S. in 2008 and became the “Leader of Diesel Competence,” working on emissions testing and certifications for VW TDI vehicles. During his time in those roles, the indictment claims, Liang and employees from another unnamed company based in Berlin “designed, created, and implemented a software function (the “defeat device”) to cheat the standard U.S. emissions tests.”

"I knew that Volkswagen did not disclose the defeat device to U.S. regulators," Liang said in court. His lawyer, Daniel Nixon, said after the hearing that his client was "very remorseful."

Liang could face up to five years in prison but may get a much lighter sentence if the government finds he provided substantial assistance. A grand jury indicted Liang in June, but the indictment was only made public recently.