VW engineers charged with insider trading over Rivian stake

The U.S. Department of Justice has charged two Volkswagen engineers, Michael Stamp and Marcus Plank, with securities fraud over an alleged insider-trading scheme tied to the German automaker’s joint venture with Rivian. The indictment, unsealed Friday by the U.S. Attorney’s Office for the Southern District of New York, alleges Stamp and Plank made more than $300,000 by using confidential insider information. The pair allegedly bought Rivian stock and options after learning that Rivian and Volkswagen planned to form a joint venture — internally codenamed “Project Climb” — but before the companies made any public announcement. Rivian and Volkswagen announced plans for the joint venture, focused on developing electric-vehicle architecture and software, on June 25, 2024.

Volkswagen initially committed to invest $5 billion in Rivian, with the capital released as the companies hit certain milestones; the joint venture has since grown to $5.8 billion, and Volkswagen is now Rivian’s largest shareholder. Rivian’s stock price rose 23% following the initial announcement in June. Stamp and Plank then allegedly sold their Rivian positions, with Stamp realizing about $250,000 in profits, Plank realizing about $50,000, and a close family member of Plank’s realizing about $12,000, according to the indictment.

U.S. Attorney Jay Clayton said the scheme allegedly let Stamp and Plank pocket more than $300,000 in illegal profits, and that insider trading undermines the fairness of the markets and erodes public confidence — adding that his office remains committed to holding violators accountable. Investigators allege the two engineers understood their actions were illegal: eight days before the joint venture was announced, Stamp searched “statute of limitations insider trading,” and a close family member of Plank’s searched, in German, “how is insider trading prosecuted?”, according to the indictment.

Stamp and Plank, who both live in San Jose, were arrested Friday and will appear in the U.S. District Court for the Northern District of California; the case has been assigned to U.S. District Judge Katherine Polk Failla. They face up to 25 years in prison if convicted of federal securities fraud. Rivian declined to comment. A Volkswagen spokesperson said the company is aware of the Justice Department’s action against the two individuals: “The action is focused on specific individuals and does not involve allegations against the company… As this is an ongoing matter, we are unable to comment further.”

Why it matters

The case underscores how closely regulators are scrutinizing trading around major automotive joint ventures, and it lands as Volkswagen’s roughly $5.8 billion Rivian tie-up — now central to both companies’ EV strategy — draws heightened outside attention.