Tag: DOJ

By on November 24, 2021

Nikola Corp. founder, Trevor Milton, has been offloading stock ever since he was indicted for making misleading and/or blatantly false statements about the company. The formal charges were issued in July, piggybacking off a critically damning report from 2020 that alleged Nikola had grotesquely misrepresented its production capabilities and falsified a video where it showed an inoperable prototype vehicle working as if it was fully functional. The paper caught the attention of both the Securities and Exchange Commission (SEC) as well as the Department of Justice (DOJ) — resulting in Milton stepping down as CEO and twelve months of investigative probes(Read More…)

By on August 6, 2021

The Biden administration released updated proposals for the mileage and emission standards to be imposed on passenger vehicles sold inside the United States this week. To the great shock of nobody, they move the country away from the targets established by the Trump administration so the nation can be brought back toward stringent Obama-era goals those later changes sought to get away from.

Though it’s not quite a return to form and environmentalists have already accused the plan of being insufficient — a take that’s as easy to predict as a sunrise. The Environmental Protection Agency would be technically setting rules that put us a year or so behind targets instituted during the Obama administration. But that’s largely understandable when that regime didn’t spend the last four years inside the White House. Besides, the Biden administration’s EPA has already confirmed it’s pushing for even tougher restrictions after 2026(Read More…)

By on July 29, 2021

The U.S. Department of Justice has indicted Nikola founder Trevor Milton over claims made to investors that could have been intentionally misleading. Though anybody tracking the story from the beginning already knows the corporate plot surrounding the company’s trucks has more holes than a deli platter comprised entirely of baby swiss. (Read More…)

By on April 23, 2021

2015 Ram 1500 EcoDiesel HFE, Image: FCA

Federal prosecutors Tuesday unsealed new criminal charges that named several Stellantis (formerly Fiat Chrysler Automobiles) officials accused of conspiring to cheat U.S. emissions tests and defraud customers buying their diesel-powered products. The indictment was opened in the Eastern District of Michigan, identifying FCA diesel senior manager Emanuele Palma (42) and two Italian nationals employed by FCA Italy SpA — Sergio Pasini (43) of Ferrera and Gianluca Sabbioni (55) of Sala Bolognese.

Palma had been charged previously and becomes a co-conspirator in the alleged plot to develop a 3.0-liter diesel engine used in FCA vehicles that could flummox emissions tests allowing the automaker to sell vehicles that did not adhere to government regulations. The motor started appearing inside engine bays in 2014, including popular models like the Ram 1500 and Jeep Grand Cherokee.  (Read More…)

By on December 14, 2020

The U.S. Department of Justice has reached a proposed civil settlement with the United Auto Workers (UAW) in the gigantic corruption case that absorbed two former presidents and a slew of union officers over the last few years. With many involved already serving the first part of their prison sentence, the UAW has reportedly agreed to hold a referendum among the rank-and-file to change the way it elects the top brass. The proposal predictably includes some court oversight designed to catch any new instances of fraud coming from inside the union but doesn’t appear to address the corporate aspect.

As a positive, it’s not assumed that the union will see a complete government takeover. Like laundry, it’s already better to separate your alleged corruption to create legal buffer zones.

(Read More…)

By on July 7, 2020

Volkswagen Group appears to have completed the terms laid out by the U.S. Department of Justice after it decided the automaker required some oversight in the wake of the 2015 emissions fiasco (colloquially known as Dieselgate). VW was found guilty of equipping certain models with emissions-cheating software that would allow the car to run cleaner under testing conditions (passing regulations) and dirtier, with better performance, the rest of the time.

The con was brilliant and allowed VW to fool regulators for years until it all blew up in its face. Getting caught in the United States kicked off a chain reaction that cost the automaker a fortune globally. In May, VW estimated it had spent €31.3 billion ($34.40 billion USD) in fines and settlements and fines globally — adding that it expects to bleed another €4.1 billion through 2021. But the company was certainly happy to announce on Monday that it had adhered to settlement deal it reached with the Department of Justice and California’s Attorney General.  (Read More…)

By on November 8, 2019

The Justice Department has issued civil subpoenas to the four major automakers’ that voluntary agreed to adopt a Californian compromise on vehicle emission requirements. The antitrust investigation seeks to determine whether or not BMW, Ford, Honda, and Volkswagen were in violation of federal competition laws by agreeing with each other to adhere to stricter emissions standards penned by California.

With the Trump administration working for years to roll back emissions standards, California has been doing everything in its power to maintain its ability to self-regulate and gain support for higher emission standards. Under the agreement with the Golden State, the companies promised to meet annual emission improvement targets of 3.7 percent and defer to the state’s authority to set its own emissions standards. (Read More…)

By on September 25, 2019

2015 Ram 1500 Laramie Crew Cab 4x4 EcoDiesel, Image: FCA

A senior manager who led the team of diesel engineers behind Fiat Chrysler’s maligned EcoDiesel V6 has been indicted by a grand jury on charges of conspiracy to mislead U.S. regulators and the public.

Following an investigation by the Department of Justice, Emanuele Palma, FCA’s senior manager of diesel driveability and emissions, faces multiple charges of conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. He’s also accused of lying to the FBI and Environmental Protection Agency investigators.

All of this stems from the EPA-led outcry over auxiliary emissions control devices found on the company’s previous-generation 3.0-liter diesel truck engine. (Read More…)

By on July 23, 2019

Ford badge emblem logo

As if preordained to coincide with Ford’s announcement of its electric F-Series prototype, news of a class-action lawsuit accusing the automaker of falsified fuel economy tests surfaced last night. The suit, filed on Monday in the U.S. District Court for the Eastern District of Michigan by Seattle law firm Hagens Berman, asks $1.2 billion in damages for customers it claims are overspending on fuel.

The legal action piggybacks on the Justice Department’s criminal investigation of Ford’s testing procedures for the 2019 Ford Ranger in April. However, the civil suit also ropes in the F-Series — claiming that customers could spend upwards of two grand in gas they never budgeted for.  (Read More…)

By on April 26, 2019

That headline was unavoidable, by the way. On the same day Ford Motor Company released a better than expected first-quarter earnings report, it also revealed the Justice Department has opened a criminal investigation into its emissions certification process — a probe that could see fuel economy ratings rolled back.

Wall Street seemed much more interested in the financial news, however, giving the company’s stock a much-needed lift. In the Glass House, Jim Hackett must be smiling. (Read More…)

By on November 21, 2018

Prosecutors may be looking into a vehicle recall affecting certain Hyundai and Kia vehicles equipped with the company’s turbocharged 2.0-liter and naturally-aspirated 2.4 liter engines. It’s not an investigation to determine if a recall is needed; rather, it’s a look-see to find out if existing recalls were conducted correctly.

It remains to be seen in these early stages if any charges will be filed. If action is taken, however, the fines levied would likely cut deeply into the company’s balance sheet.

(Read More…)

By on October 27, 2018

Given that Tesla CEO Elon Musk’s Twitter account now has third-party oversight, it’s unlikely we’ll see angry missives about the Fun-Busting Interrogators this weekend. However, that won’t stop the FBI from probing Musk’s past production promises for the Model 3 sedan.

As part of an ongoing Department of Justice investigation that kicked off after Musk’s fateful August 7th “funding secured” tweet, the FBI wants to know if the automaker misled investors via production promises that didn’t pan out. (Read More…)

By on September 18, 2018

Elon Musk

What a week it’s shaping up to be for Tesla CEO Elon Musk. Interestingly, if this latest report proves true, we can pin the blame for all of Musk’s misfortune over the past 24 hours on the presence of social media, and his tendency to overuse it.

According to Bloomberg, the U.S. Justice Department has opened a fraud investigation into Musk’s infamous “funding secured” tweet — the online message that kicked off a strange journey that ultimately went nowhere. (Read More…)

By on April 11, 2018

2015 Ram 1500 EcoDiesel HFE, Image: FCA

When Fiat Chrysler Automobiles regails the class with a “how I spend my summer” story this fall, expect some mention of handing over large sums of money to state and federal governments.

The U.S. Department of Justice and California Air Resources Board want the automaker to make things right after accusing it of polluting the nation’s air via its 3.0-liter EcoDiesel V6 engines. Some 104,000 Jeep and Ram vehicles from the 2014 to 2016 model years contained emissions control devices not revealed to the Environmental Protection Agency, which came down hard on the automaker after their discovery. According to FCA’s lawyer, the settlement could come this summer.

What does the DOJ want? According to an earlier settlement offer sent to the automaker, the levelling of “very substantial civil penalties” is the only way to ensure FCA learns its lesson. (Read More…)

By on February 5, 2018

2016 Ram 1500 Laramie Crew Cab 4x4 EcoDiesel

Fiat Chrysler Automobiles might need the 2019 Ram 1500’s newly increased payload capability when it comes time to visit the bank.

As we’ve told you since the scandal broke a year ago, FCA could find itself on the hook for hefty penalties after the Environmental Protection Agency slammed it for failing to declare a bevy of auxiliary emission control devices on its 3.0-liter diesel V6 engine. With the 2017 and 2018 Ram and Jeep EcoDiesel models now in compliance, the question becomes: what does FCA pay to settle the fallout?

According to documents obtained by Bloomberg, it seems the monetary fine sought by the U.S. Justice Department might not fit in the pickup bed. (Read More…)

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