Whistleblower News From The Inside -- May 4, 2018
By the C|C Whistleblower Lawyer Team
Ex-Volkswagen CEO Charged With Fraud Over Diesel Emissions – The Volkswagen emissions scandal reached the highest echelons of the company yesterday after its former chief executive was charged with conspiracy in the company’s rigging of diesel vehicles to feign compliance with federal pollution standards. The indictment of the former executive, Martin Winterkorn, who resigned shortly after the emissions scandal erupted in September 2015, significantly raises the stakes for Volkswagen. The charges contradict the German carmaker’s steadfast insistence that no members of its management board were involved in the emissions fraud. They also weaken the company’s defense in a related suit by shareholders — potentially adding billions of dollars to the scandal’s already astronomical cost. NYT
Whistleblowers Say Southwest Pressures Mechanics to Ignore Airplane Problems – At least 10 mechanics who work on Southwest passenger jets in Dallas and Los Angeles say the air carrier has discouraged maintenance personnel from reporting potential safety issues. According to a pair of whistleblower complaints, Southwest supervisors have been accused of applying “pressure not to document discrepancies” and creating “a culture of fear and retribution.” NBC New York
Jay-Z The Target Of The SEC, Potentially Faces Contempt And Incarceration – The SEC is seeking a court order for Shawn Carter AKA Jay-Z to appear in court and comply with SEC subpoena requests to testify on his joint venture with Iconix Brand Group, Inc. Iconix is being investigated by the SEC for potential federal securities law violations related to its financial reporting. Jay-Z and business partners established apparel brand Rocawear in 1999, and sold it to Iconix in 2007 for over $200 million in intangible assets. The SEC is seeking Jay-Z’s testimony on the deal to investigate inconsistencies in Iconix’s reporting. The SEC issued two subpoenas for this testimony and Jay-Z failed to appear both times. Forbes