Former VW Engineers Arrested for Insider Trading Tied To Rivian Deal

Two former Volkswagen Group engineers have been arrested and charged in a federal insider trading scheme. The federal indictment alleges the men used non-public corporate data to buy up massive stock positions in EV startup Rivian Automotive just days before VW announced a massive joint venture.

The U.S. Attorney’s Office for the Southern District of New York unsealed the indictment, naming Michael Stamp, 31, and Marcus Plank, 45, as the primary defendants. Both men were German nationals working in California on a temporary assignment for a Volkswagen technology subsidiary. Through their day-to-day access to proprietary powertrain and electronic systems data, they gained early knowledge of the automotive partnership.

They Literally Googled It

While federal prosecutors routinely track suspicious equity spikes through advanced market surveillance algorithms, the case against Stamp and Plank contains a glaring paper trail of digital evidence. According to investigators, the engineers used their personal and work devices to conduct Google searches that directly pointed to their illegal trading plans and anxiety over getting caught.

Some of the incriminating search queries uncovered by the FBI included searches regarding the impending Volkswagen acquisition, the mechanics of insider trading call options, how the SEC catches insider traders, and whether the FBI can track deleted search history.

Despite their apparent concerns, the pair proceeded with the strategy. Shortly after learning of the partnership discussions, the pair began aggressively purchasing high-leverage short-term call options and standard equity positions in Rivian stock.

When Volkswagen officially made the joint venture public, Rivian shares skyrocketed. The sudden market spike triggered the engineers' option contracts, netting them huge, immediate returns.

Stamp pocketed approximately $250,000 in illegal gains and immediately began transferring the funds to his personal bank accounts, while Plank walked away with at least $50,000 after liquidating his option contracts. Additionally, Plank allegedly tipped off a family member who managed to squeeze out $12,000 from the stock movement.

Both defendants face one count of conspiracy to commit securities fraud, which carries a maximum five-year prison term, alongside standalone securities fraud counts that carry a maximum penalty of 20 years in federal prison.

Neither Volkswagen Group nor Rivian Automotive has been accused of any corporate wrongdoing in connection with the employee trades.