Volkswagen engineers charged in $300,000 insider trading scheme linked to Rivian deal
Michael Stamp and Marcus Plank face up to 25 years in prison after allegedly exploiting non-public information regarding the German automaker’s $5.8 billion investment in the US electric vehicle maker.
The US Department of Justice has charged two Volkswagen engineers with securities fraud, alleging they exploited confidential information surrounding the German automaker’s joint venture with Rivian to generate more than $300,000 in illegal profits. The indictment, unsealed on Friday by the US District Attorney for the Southern District of New York, names Michael Stamp and Marcus Plank as the primary defendants in the alleged insider-trading scheme.
According to the filing, Stamp and Plank, both residing in San Jose, purchased Rivian stock and options after learning of the planned partnership but before it was made public. The joint venture, internally codenamed “Project Climb,” was officially announced on 25 June 2024 and focuses on the development of electric vehicle architecture and software. Following the announcement, Rivian’s share price surged by 23 per cent.
Volkswagen initially committed $5 billion to Rivian, with capital releases tied to specific milestones. That investment has since expanded to $5.8 billion, making the German manufacturer Rivian’s largest shareholder. The indictment details that the engineers sold their positions after the public disclosure, with Stamp realising approximately $250,000 in profits, Plank securing around $50,000, and a close family member of Plank gaining roughly $12,000.
US Attorney Jay Clayton condemned the alleged actions in a statement, emphasising the harm caused to market integrity. “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,” Clayton said. “When people misuse confidential information for their own financial gain, they undermine the principles that allow our markets to function fairly and efficiently.”
Investigators allege the defendants were aware of the illegality of their conduct. The indictment notes that eight days before the joint venture announcement, Stamp searched for “statute of limitations insider trading,” while Plank’s family member searched in German for “how is insider trading prosecuted?” The pair were arrested on Friday and are scheduled to appear in the US District Court for the Northern District of California, where the case has been assigned to US District Judge Katherine Polk Failla.
If convicted of federal securities fraud, Stamp and Plank face up to 25 years in prison. TechCrunch has contacted Rivian and Volkswagen for comment regarding the charges.
