Manhattan U.S. Attorney Announces Extradition Of Four Mexican Nationals For International Sex Trafficking Offenses

   Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Acting Assistant Attorney General John M. Gore of the Civil Rights Division, and Angel M. Melendez, Special Agent in Charge of the New York Field Office of ICE’s Homeland Security Investigations (“HSI”), announced the extradition of EFRAIN GRANADOS-CORONA, a/k/a “Chavito,” a/k/a “Cepillo,” EMILIO ROJAS-ROMERO, ALAN ROMERO-GRANADOS, a/k/a “El Flaco,” and PEDRO ROJAS-ROMERO, who are charged together with RAUL ROMERO-GRANADOS, a/k/a “Chicarcas,” a/k/a “El Negro,” ISAAC LOMELI-RIVERA,” a/k/a “Giro,” JULIO SAINZ-FLORES, a/k/a “Rogelio,” and JUAN ROMERO-GRANADOS, a/k/a “Chegoya,” a/k/a “El Guero,” with sex trafficking offenses in a 23-count Superseding Indictment (the “Indictment”) in the United States District Court for the Southern District of New York.  EFRAIN GRANADOS-CORONA and EMILIO ROJAS-ROMERO were extradited to the United States from Mexico on April 26, 2018, and presented before United States Magistrate Judge Stewart D. Aaron on April 27, 2018.  ALAN ROMERO-GRANADOS and PEDRO ROJAS-ROMERO were extradited to the United States from Mexico on May 2, 2018, and presented yesterday before United States Magistrate Judge Debra Freeman.  This case is assigned to United States District Judge Andrew J. Carter, Jr.

The Indictment, which was returned under seal on September 15, 2016, alleges that the defendants are members of an international sex trafficking organization that exploited and trafficked adult and minor women in Mexico and in the United States from at least 2000 to 2016.  Members of the defendants’ sex trafficking organization, which operated largely as a family business, used false promises, physical and sexual violence, and threats to force and coerce adult and minor women to engage in commercial sex for the organization’s profit in both Mexico and the United States. 

As part of a coordinated bilateral law enforcement action, six defendants located in Mexico – EFRAIN GRANADOS-CORONA, EMILIO ROJAS-ROMERO, ALAN ROMERO-GRANADOS, PEDRO ROJAS-ROMERO, JULIO SAINZ-FLORES, and JUAN ROMERO-GRANADOS – were arrested in Mexico and taken into custody by Mexican authorities pursuant to provisional arrest warrants requested by the United States in August 2016.  As noted, the first four of these defendants were extradited to the United States from Mexico within the past week.  The fifth of these defendants, JULIO SAINZ-FLORES, was previously extradited to the United States from Mexico on June 8, 2017, and was presented in Manhattan federal court before Chief United States Magistrate Judge Gabriel W. Gorenstein on June 9, 2017.  JUAN ROMERO-GRANADOS remains in Mexico pending extradition proceedings.  The two defendants who were arrested in the United States, RAUL ROMERO-GRANADOS and ISAAC LOMELI-RIVERA, were presented in Manhattan federal court on October 27, 2016, before United States Magistrate Judge Kevin Nathaniel Fox. 

U.S. Attorney Geoffrey S. Berman said:  “Sex trafficking is a heinous crime that violates both the rule of law and the most basic standards of human dignity.  These defendants allegedly deprived women and girls of their freedom, and forced them into prostitution against their will.  The scope of devastation these defendants allegedy inflicted on countless victims is beyond comprehension.  But now they face significant criminal charges in an American court, and will have to answer for their allegedly reprensible actions.  Our office is dedicated to combatting this demoralizing crime and helping survivors reclaim their lives.”

Acting Assistant Attorney General John M. Gore of the Civil Rights Division said:  “The Civil Rights Division will not tolerate anyone violating an individual’s rights and freedoms through sex trafficking.  We will continue to work with our law enforcement partners to vindicate the rights of victims and survivors of sex trafficking by dismantling transnational organized trafficking enterprises and putting an end to these egregious civil rights violations.”

HSI Special Agent in Charge Angel M. Melendez said:  “These four individuals were transported more than 2,000 miles from Mexico to be held accountable for the callous criminal actions alleged in this case.  Those extradited, along with others, allegedly operated a family business centered on making money from exploiting females they forced into sex slavery.  Now these traffickers will face justice where they allegedly made their income, right here in New York.  Human Trafficking remains a priority for HSI, whose primary focus is to rescue victims and release them from the grip of their captors.”

As alleged in the Indictment:[1] 

EFRAIN GRANADOS-CORONA, RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA, JULIO SAINZ-FLORES, JUAN ROMERO-GRANADOS, ALAN ROMERO-GRANADOS, PEDRO ROJAS-ROMERO, and EMILIO ROJAS-ROMERO, the defendants, are members of an international sex trafficking organization (the “STO”).  Many of the members of the STO are related by blood, marriage, and community.  For example:  EFRAIN GRANADOS-CORONA is the uncle of RAUL ROMERO-GRANADOS, ISAAC LOMELI-RIVERA, JUAN ROMERO-GRANADOS, and ALAN ROMERO-GRANADOS; PEDRO ROJAS-ROMERO and EMILIO ROJAS-ROMERO are brothers; JUAN ROMERO-GRANADOS and ALAN ROMERO-GRANADOS are also brothers; and ISAAC LOMELI-RIVERA is RAUL ROMERO-GRANADOS’s brother-in-law.

Between 2000 and the present, members of the STO (the “Traffickers”) have used false promises, physical and sexual violence, threats of the same, lies, and coercion to force and coerce adult and minor women (the “Victims”) to work in prostitution in both Mexico and the United States.

In most cases, a Trafficker entices a Victim – frequently a minor – in Mexico.  The Trafficker then uses multiple means to isolate the Victim from her family.  In some cases, the Trafficker uses romantic promises to induce the Victim to leave her family and live with him.  In other cases, the Trafficker rapes the Victim, making it difficult for her to return to her family due to the associated stigma of the rape.  Once a Victim is separated from her family, the Trafficker frequently monitors her communications, keeps her locked in an apartment, leaves her without food, and engages in physical or sexual violence against the Victim.  Traffickers often tell Victims that the Traffickers owe a significant debt and that the Victim must work in prostitution to assist in repaying the debt.  Traffickers typically begin forcing the Victims to work in prostitution in Mexico, frequently in a neighborhood of Mexico City known as “La Merced.”   Victims are often required to see at least 20 to 40 customers per day.  Traffickers monitor the number of clients a Victim sees by surveilling the Victim, communicating with brothel workers, and by counting the number of condoms provided to a Victim.  Traffickers typically require the Victims to turn over all of the prostitution proceeds to the Traffickers. 

After a Victim has worked in prostitution in Mexico for some time, Traffickers typically arrange for the Victim to be smuggled into the United States.  Members of the STO assist one another in making smuggling arrangements.  In many cases, multiple Traffickers and multiple Victims are smuggled into the United States together.  In other cases, one Trafficker may remain in Mexico while arranging for a Victim to be smuggled together with another Trafficker and other Victims.

Once in the United States, the members of the STO generally maintain their Victims at one of several shared apartments in New York City.  Victims living in the same apartment are frequently forbidden to communicate with one another.  Once in the United States, Traffickers continue to use physical and sexual violence, threats of the same, lies, and coercion to force the Victims to work in prostitution. 

In most cases, the Trafficker or another member of the STO provides a Victim with contact information with which to find work.  The Victims typically work weeklong shifts either in a brothel, or in a “delivery service.”  In a delivery service, the Victim is delivered to a customer’s home by a “driver.”  These brothels and delivery services are located both within New York and in surrounding states, including, but not limited to, Connecticut, Maryland, Virginia, New Jersey, and Delaware.

Generally, each customer pays $30-35 for 15 minutes of sex.  Of that, half of the money typically goes to the driver (in the case of a delivery service) or to the brothel.  The other $15 goes to the Victim, who is then typically forced to give all of the proceeds to the Trafficker.  When a Trafficker is unavailable, a Victim may also give the proceeds to another member of the STO.

The Traffickers then frequently send, or have their Victims send, some of the prostitution proceeds to Traffickers’ family members and associates in Mexico by wire transfer.  Such transfers provide financial assistance to the Traffickers’ families and provide financial support to the Traffickers themselves if they return to Mexico.                   

Since 2009, the Department of Justice – through the Civil Rights Division’s Human Trafficking Prosecution Unit – and HSI have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative aimed at strengthening high-impact prosecutions under both U.S. and Mexican law.  The initiative is aimed at dismantling human trafficking networks operating across the United States-Mexico border, bringing human traffickers to justice, reuniting victims with their children, and restoring the rights and dignity of human trafficking victims held under the trafficking networks’ control.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 50 defendants in multiple cases in New York, Georgia, Florida, and Texas since 2009, and numerous Mexican federal and state prosecutions of associated sex traffickers.  In announcing the extradition, U.S. Attorney Geoffrey S. Berman and Acting Assistant Attorney General John M. Gore of the Civil Rights Division commended U.S. and Mexican law enforcement partners for their shared and continued commitment to coordinated bilateral anti-trafficking efforts.

Mr. Berman also praised the outstanding investigative work of HSI, the work of the Mexican government, and Mexican law enforcement in executing the arrests and preparing for the extradition of the defendants to the United States, and the assistance provided by the New York City Police Department, the State Department, the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Criminal Division’s Office of International Affairs.  The Justice Department also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families in connection with this case and others.

Charts containing the names, ages, residences, charges, mandatory minimum penalties, and maximum penalties for the defendants are set forth below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.

United States v. Efrain Granados-Corona, a/k/a “Chavito,” a/k/a “Cepillo,” et al.,

S2 16 Cr. 324 (ALC)

COUNT / CHARGE	DEFENDANT(S)	MANDATORY MINIMUM PENALTIES	MAXIMUM PENALTIES
Count 1: Conspiracy to Commit Sex Trafficking 18 U.S.C. § 1594	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro,” ISAAC LOMELI-RIVERA,    a/k/a “Giro,”  JULIO SAINZ-FLORES,    a/k/a “Rogelio,” JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero,” ALAN ROMERO-GRANADOS,    a/k/a “El Flaco,” PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO	N/A	Life in prison
Count 2: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	15 years in prison	Life in prison
Count 3: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	EFRAIN GRANADOS-CORONA,  a/k/a “Chavito,” a/k/a “Cepillo”	15 years in prison	Life in prison
Count 4: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	JULIO SAINZ-FLORES,    a/k/a “Rogelio”	15 years in prison
Count 5: Sex Trafficking of a Minor by Force, Fraud, or Coercion 18 U.S.C. §§ 1591(a), (b)(1), (b)(2), and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	15 years in prison	Life in prison
Count 6: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo,” RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro,” PEDRO ROJAS-ROMERO	15 years in prison	Life in prison
Count 7: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	15 years in prison	Life in prison
Count 8: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	15 years in prison	Life in prison
Count 9: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero”	15 years in prison	Life in prison
Count 10: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	ALAN ROMERO-GRANADOS,    a/k/a “El Flaco”	15 years in prison	Life in prison
Count 11: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	EMILIO ROJAS-ROMERO	15 years in prison	Life in prison
Count 12: Sex Trafficking by Force, Fraud, and Coercion 18 U.S.C. §§ 1591(a), (b)(1), and 2	PEDRO ROJAS-ROMERO, EMILIO ROJAS-ROMERO	15 years in prison	Life in prison
Count 13: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo”	10 years in prison	Life in prison
Count 14: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	10 years in prison	Life in prison
Count 15: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	RAUL ROMERO-GRANADOS,    a/k/a “Chicarcas,”    a/k/a “El Negro”	10 years in prison	Life in prison
Count 16: Transportation of a Minor for Purposes of Prostitution 18 U.S.C. §§ 2423(a) and 2	JULIO SAINZ-FLORES,    a/k/a “Rogelio”	10 years in prison	Life in prison
Count 17: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	EFRAIN GRANADOS-CORONA,    a/k/a “Chavito,”    a/k/a “Cepillo”	N/A	10 years in prison
Count 18: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	N/A	10 years in prison
Count 19: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ISAAC LOMELI-RIVERA,    a/k/a “Giro”	N/A	10 years in prison
Count 20: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	JUAN ROMERO-GRANADOS,    a/k/a “Chegoya,”    a/k/a “El Guero”	N/A	10 years in prison
Count 21: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	ALAN ROMERO-GRANADOS,    a/k/a “El Flaco”	N/A	10 years in prison
Count 22: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	PEDRO ROJAS-ROMERO	N/A	10 years in prison
Count 23: Transportation for Purposes of Prostitution 18 U.S.C. §§ 2421 and 2	EMILIO ROJAS-ROMERO	N/A	10 years in prison

DEFENDANT	AGE	RESIDENCE
EFRAIN GRANADOS-CORONA,      a/k/a “Chavito,”      a/k/a “Cepillo”	42	Mexico
RAUL ROMERO-GRANADOS,      a/k/a “Chicarcas,”      a/k/a “El Negro”	34	New York
ISAAC LOMELI-RIVERA,      a/k/a “Giro”	35	New York
JUAN ROMERO-GRANADOS,      a/k/a “Chegoya,”      a/k/a “El Guero”	32	Mexico
JULIO SAINZ-FLORES,    a/k/a “Rogelio”	36	Mexico
ALAN ROMERO-GRANADOS,      a/k/a “El Flaco”	24	Mexico
PEDRO ROJAS-ROMERO	38	Mexico
EMILIO ROJAS-ROMERO	36	Mexico

[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

BRONX MAN SENTENCED TO 10 1/2 YEARS IN PRISON FOR ROBBERIES TARGETING ELDERLY WOMEN

Defendant Also Sentenced for Jail House Violence At Rikers Island

  Bronx District Attorney Darcel D. Clark today announced that a Bronx man has been sentenced to 10 years and six months in prison for two robberies committed against elderly women in the Mott Haven area. 

  District Attorney Clark said, “It is horrifying that someone would terrorize an elderly person. The streets of the Bronx are safer now that the defendant will be behind bars for a decade. We hope this sentence provides the victims with justice and a sense of security that we will continue to protect the vulnerable.” 

  District Attorney Clark said the defendant, Gilrael Ruperto, 28, was sentenced today to 10 years and six months in prison followed by five years of post-release supervision by Bronx Supreme Court Justice Michael Gross. The defendant pleaded guilty to second-degree Robbery as a Hate Crime and second-degree Promoting Prison Contraband on April 10, 2018. For the latter misdemeanor charge, he was sentenced to one year in jail to run concurrent to the Robbery sentence. 

  According to the investigation, throughout the month of November 2015, the defendant targeted two women over the age of 60, threatening them and taking their money and other possessions. In a building on East 153rd Street, the defendant stole $50 from a 64-year-old woman after punching her repeatedly and ripping off her earrings as she exited an elevator. In another incident, he robbed a 72-year-old woman of her purse after throwing her to the ground. In both incidents, the defendant sprayed the women with an unknown substance.

  According to the investigation, on April 5, 2017, while incarcerated at Rikers Island, the defendant was found to be hiding a scalpel. 

  District Attorney Clark thanked Det. Sandy Polanco of the 40th precinct for all his hard work on this case. 

STATEMENT FROM STATE SENATOR GUSTAVO RIVERA ON SAFE INJECTION SITES COMING TO NEW YORK CITY

  It is highly encouraging to see the City pursue the opening of four safe injection sites throughout our City to operate under a one-year pilot program in an attempt to implement innovative solutions to address the opioid epidemic and save the lives of New Yorkers. I have always been a proponent of harm reduction policies and programs because they are a more effective way of addressing addiction and the implementation of safe injection sites falls in line with that principle. The Overdose Prevention Centers proposed by the City will give New Yorkers struggling with addiction access to a professional that can monitor their drug use, help prevent them from dying from an overdose, counsel them on treatment options, and reduce their chances of getting infected with HIV or Hepatitis C. In the long run, this type of intervention will not only help the individual, but also our system by reducing the spread of life threatening conditions and alleviating the strain on our healthcare system by reducing hospitalizations and emergency visits. We have a responsibility to implement policies and programs that will truly help the many New Yorkers who are struggling with opioid addiction and have been impacted by this epidemic, regardless how controversial those programs and policies may be. The Mayor's plan takes us one step closer to providing these New Yorkers with direct access to the life saving services they need.

EDITOR'S NOTE:

Now where is this site going in the Bronx since the Manhattan site will be in Washington Heights Senator Rivera?

WHAT YOU SHOULD KNOW - COUNCILMAN REV. RUBEN DIAZ INVITES YOU TO CELEBRATE CINCO DE MAYO WITH REAL BULLS

You should know that El Festival-Jaripeo will be coming to the Bronx to my Council District to celebrate el Cinco de Mayo.

There will be musical groups such as the Alacranes, Sonora Dinamita, Los Principes, and many other Mexican musical groups that will be entertaining the community. There will be Mexican folklore dancing groups and a live rodeo with real cowboys.

This activity will take place tomorrow, Saturday, May 5^th at noon at 2069 Bruckner Blvd Bronx, NY. As a Council Member representing the District, it is an honor for me to celebrate Cinco de Mayo with such a tremendous event and unique activity.

I am Council Member Rev. Ruben Diaz, Sr and this is what you should know.

For more information please call 646-408-6587 / 646-281-2094 / 212-804-8998

I am Councilman Rev. Rubén Díaz, and this is what you should know.

49th Precinct 30th Annual Fellowship Breakfast Conference on Friday, May 18th, 9:00 AM at Maestro's,

49th Precinct 30th Annual 

Fellowship Breakfast Conference

*** On Friday, May 18th, 9:00 AM ***

At Maestro’s, 1702 Bronxdale Ave. 

RSVP by May 10^th (Det. Jay Sturdivant - PO David Lepore (718) 918-2025)

The 49th Precinct NYPD

Commanding Officer, Captain Thomas J. Alps

Precinct: (718) 918-2000 

Emergency: call  911 Non-Emergency: call 311

Community Affairs: (718) 918-2025 

Crime Prevention: (718) 918-2026

WHAT YOU SHOULD KNOW By Councilman Rev. Ruben Diaz - Why Not Staten Island?

  You should know that it seems NYC Mayor Bill de Blasio wants to dump everything on the residents of four boroughs, exempting Staten Island from the pain & suffering he is inflicting on others.

It is important for you to know. First, the Mayor wants to close Rikers Island – House of Detention. In order to do that, our beloved Mayor plans to build houses of detention in different boroughs. He will build one in the Bronx, one in Manhattan, one in Brooklyn, and one in Queens, but none in Staten Island. My question is – Why not Staten Island?

Now, our beloved Mayor has come with the idea of opening four different sites where drug addicts may freely inject their daily doses. Once upon a time, these were known in the streets as “shooting galleries”.

My dear reader, I just want you to know that once again the Mayor is proposing to open these “shooting galleries” in only four boroughs of the City. The Bronx, Manhattan, Brooklyn, and Queens, but for some unknown reason, the Mayor once again proposes to exempt Staten Island. They are being given this exemption even though Staten Island has one of the highest overdose rates in the City. So again I have to question – Why not Staten Island?

It is my opinion that all five boroughs should equally bear the burden the Mayor wants to force on only four boroughs. That way, people will not be asking in the future – Why not Staten Island?

I am Councilman Rev. Rubén Díaz, and this is what you should know.

EDITOR'S NOTE:

We agree 100 PERCENT with Councilman Reverend Ruben Diaz Sr. 

Former CEO of Volkswagen AG Charged With Conspiracy And Wire Fraud In Diesel Emissions Scandal

  An indictment was unsealed earlier today charging Martin Winterkorn, 70, the former chairman of the management board of Volkswagen AG (VW), with conspiracy and wire fraud in connection with VW’s long-running scheme to cheat U.S. diesel vehicle emissions requirements.

Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Deputy Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division, EPA Administrator Scott Pruitt, and Special Agent in Charge Timothy R. Slater of FBI’s Detroit Division, made the announcement. 

The superseding indictment was issued by a federal grand jury sitting in the Eastern District of Michigan and charges Winterkorn with four counts of violating federal law.  The first count charges that Winterkorn conspired with other senior VW executives and employees to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The remaining three counts charge Winterkorn with wire fraud in connection with the scheme.

“If you try to deceive the United States, then you will pay a heavy price,” said Attorney General Sessions. “The indictment unsealed today alleges that Volkswagen’s scheme to cheat its legal requirements went all the way to the top of the company.  These are serious allegations, and we will prosecute this case to the fullest extent of the law.  I want to thank the Criminal Division’s Fraud Section, the Department’s Environment and Natural Resources Division and the U.S. Attorney’s Office for the Eastern District of Michigan as well as our partners at the EPA, FBI and in Germany for their hard work on this important case.”

“Volkswagen deceived American regulators and defrauded American consumers for years,” said U.S. Attorney Schneider.  “The fact that this criminal conduct was allegedly blessed at Volkswagen’s highest levels is appalling.  The U.S. Attorney’s Office is committed to pursuing accountability for corporate crimes, and the Winterkorn prosecution is a reflection of that commitment.”

“The indictment of former VW CEO Martin Winterkorn should send a clear message that EPA and its law enforcement partners will seek to hold corporate officers accountable for alleged criminal activities at their company,” said EPA Administrator Pruitt.

“Today’s indictment of Volkswagen AG’s former CEO, Martin Winterkorn, sends a clear message that businesses both here in the United States and abroad are expected to conduct their business honestly,” said FBI Special Agent in Charge Slater.  “Accountability will be sought for any individuals or corporations that cheat American consumers or harm the environment by circumventing the standards set by our legal system.” 

The indictment of Winterkorn represents the most recent charges in an ongoing investigation by U.S. criminal authorities into unprecedented emissions cheating by VW.  In March 2017, VW pleaded guilty to criminal charges that it deceived U.S. regulatory agencies, including the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), by installing so-called defeat devices in diesel vehicles emissions control systems that were designed to cheat emissions tests.  The defeat devices consisted of software designed to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions, in which case harmful nitrogen oxide (NOx) emissions increased significantly. 

As part of its plea agreement with the Department, VW paid a criminal penalty of $2.8 billion.  VW also agreed to the imposition of an independent corporate compliance monitor for the duration of its probation, which is at least three years.  Subsequently, Larry Thompson was appointed as VW’s monitor.

Winterkorn, who served as VW’s management board chairman and thus VW’s highest ranking executive from January 2007 until September 2015, is the ninth individual against whom U.S. criminal authorities have announced charges in connection with this matter.  Two former VW engineers, Oliver Schmidt, 48, and James Liang, 63, both German citizens, pleaded guilty to participating in the conspiracy alleged in the indictment and are currently serving sentences of 84 months and 40 months in prison, respectively, imposed by U.S. District Judge Sean F. Cox of the Eastern District of Michigan.  Five additional defendants, including former VW executives and senior managers, were indicted in January 2017, but have not been apprehended.  Similar to Winterkorn, each of them is believed to be a German citizen and to reside in Germany.  Finally, one former manager of VW’s subsidiary Audi AG, Giovanni Pamio, 61, an Italian citizen, has been charged by complaint and currently remains in Germany pending extradition.  

The indictment of Winterkorn alleges that he was informed of VW’s diesel emissions cheating in May 2014 and again in July 2015.  The indictment further alleges that Winterkorn, after having been clearly informed of the emissions cheating, agreed with other senior VW executives to continue to perpetrate the fraud and deceive U.S. regulators. 

As the indictment sets forth, in the spring of 2014 a study commissioned by the International Council on Clean Transportation (the ICCT study) tested road emissions of two VW diesel vehicles sold in the United States.  The results of the study showed significantly elevated NOx levels of the two VW vehicles, with one emitting up to 35 times above the allowable legal limit.  VW management quickly learned of the results of the study and discussed potential consequences flowing from the revelations.  Specifically, the indictment alleges that Bernd Gottweis, a senior manager then responsible for product safety issues, met with employees of the engine development department to discuss the ICCT study.  Upon learning of the facts revealed by the study and the risks facing the company, Gottweis remarked that he needed to speak with Winterkorn immediately.  Shortly thereafter, on May 22, 2014, Gottweis wrote a one-page memorandum describing the results of the ICCT study and warning that VW could not give a well-grounded explanation for the dramatically increased NOx emissions and that it could be assumed that the authorities would investigate whether the vehicles contained test-recognition software.  Gottweis’s memorandum was then attached to a cover note authored by a then-senior VW executive, and addressed to Winterkorn. 

As alleged in the indictment, following publication of the ICCT study in the spring of 2014 the company knowingly continued to deny the existence of emissions cheating in its vehicles until late summer 2015.  Instead, VW sought to deceive U.S. regulators about the causes for the significant discrepancies between emissions tests and emissions values measured on the road.

By the summer of 2015, however, the indictment alleges that U.S. regulators threatened to withhold authorization for VW to sell Model Year 2016 diesel vehicles in the United States until VW answered their questions about the discrepancies uncovered by the ICCT study.  The diesel situation in the United States became increasingly alarming to VW senior management, culminating in a meeting on July 27, 2015 at VW’s headquarters in Wolfsburg, Germany, internally referred to as the “damage table meeting.”  During that meeting, which was chaired by Winterkorn and attended by several senior VW executives, engine development department employees, with the help of a PowerPoint presentation, described to the attendees, and Winterkorn specifically: (1) how VW was deceiving U.S. regulators, including precisely what information had been disclosed and what had not yet been disclosed; and (2) the potential consequences of VW being caught cheating. 

The indictment alleges that upon being presented with those and other facts, Winterkorn did not order his subordinates to disclose the cheating but instead agreed to continue to deceive U.S. authorities.  Part of that strategy, which Winterkorn allegedly approved at the July 27, 2015 meeting, and which informed VW’s steps over the next several weeks, included sending Oliver Schmidt to meet with a senior CARB official on Aug. 5, 2015, in order to obtain the release of the Model Year 2016 vehicles without revealing the fundamental reason for the higher NOx measurements on the road: that software had been intentionally installed in VW vehicles so the vehicles could detect and evade emissions testing.  Consistent with Winterkorn’s alleged directive from the July 27 meeting, VW executives also approved a script for an Aug. 19, 2015 meeting with CARB that continued to conceal VW’s cheating.  At the meeting, however, in direct contravention of the instructions from his superiors, a VW employee, in answering a direct question from CARB, revealed that VW had been using software in its 2.0 liter diesel vehicles to cheat U.S. emissions tests.  On Sept. 3, 2015, VW officially admitted that it had installed defeat devices in various 2.0 liter diesel vehicles sold in the United States.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

FBI and EPA Criminal Investigation Division are investigating the case.