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Judge denies bail to Volkswagen executive held in emissions scandal

Concern that Oliver Schmidt could leave U.S.
Posted at 6:48 AM, Jan 13, 2017
and last updated 2017-01-13 10:51:50-05

A  Volkswagen executive indicted for the emissions scandal will be staying in jail for a while. A judge in Miami denied bail to Oliver Schmidt of Germany, who was arrested while vacationing in Florida.

Federal prosecutors convinced U.S. Magistrate Judge William Turnoff  that Schmidt could be a flight risk if he is set free before trial. Prosecutors are concerned because if Schmidt were to return to Germany, there would be no way for the U.S. TO extradite him.

The judge indicated  Schmidt could face a long prison sentence (169 years on conspiracy and fraud charges) and the case against him appears strong. In the hearing Judge Turnoff said:  "I am concerned that he is a citizen of a country that does not have an extradition treaty with the United States,"
 
Schmidt's attorney, David Massey, said he will pitch the case for  bail when he goes to federal court in Detroit, where the case will be tried. Massey said Schmidt claims he is innocent and he has no intention of leaving the U.S.. He's apparently willing to give up his passport and other identification papers if he's released on bail and house arrest.
 
Schmidt and five other Volkswagen executives were charged Wednesday in an indictment released in Detroit.  They are accused of  playing key roles in Volkswagen's plot to knowingly sell nearly 600,000 diesel vehicles that violated U.S. pollution emissions standards.
 
The company has agreed to plead guilty and pay a record criminal penalty of $4.3 billion.
  
Schmidt is the only indicted executive in American custody. The others are still in Germany.  Court papers indicate Schmidt was general manager of a VW environmental engineering office in Auburn Hills, Michigan, from 2012 to 2015,
 
The Associated press cites court documents that reportedly say:, Schmidt and others actively deceived regulators about the vehicle emissions and he later deleted documents relevant to the subsequent investigation despite company warnings to preserve them.
 
Justice Department trial attorney Ben Singer also said Schmidt also was deceptive when he voluntarily met with FBI agents in London, England, in November 2016.
 
Schmidt's attorney Massey says  before the arrest, Schmidt flew  with his wife from Germany to Miami and the couple then visited Cuba. All this happened while Schmidt knew he was under U.S. investigation. They returned to Miami and spent theholidays with friends.  But the feds arrested Schmidt Saturday, as he was trying to fly home from Miami's airport.