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SEC says Volkswagen perpetrated fraud, song to investors

The Securities and Exchange Commission allegedly filed for Volkswagen "perpetrated on massive fraud" and repeatedly led to U.S. investors in connection with the so-called dieselgate scandal.

8 and accused of conspiring to cover the German automaker's diesel emission cheating.

The SEC said in its complaint filed in San Francisco that from April 2014 to May 2015, Volkswagen issued more than $ 13 billion in bonds and asset-backed securities in US markets at a time when senior executives knew that more than 500,000 U.S. "By concealing the emission scheme, Volkswagen reaped hundreds of millions of dollars in profit by issuing the securities at more attractive rates for the company," the SEC said in a summary of its filing rates. .

Volkswagen said the SEC complaint "is legally and factually flawed." Reuters reported that a lawyer for Winterkorn could not be reached early on Friday

VW had reported in its annual report that the SEC could take enforcement action against the German automaker's involvement in the emission scandal.

automaker said the agency is "piling on" and that the agency's complaint is without merit.

The SEC has asked Volkswagen for information on potential securities law violations over certain investments the company may have sold to investors. The agency is looking for evidence determining whether the automaker failed to disclose information about vehicles that did not comply with U.S.A. Issue standards when issued certain securities to investors

One of the world's largest carmakers, Volkswagen was rocked by reports first surfacing in 2015 that it had been caught cheating on emission tests in the United States. Volkswagen's billions of dollars to settle and forced to recall millions of vehicles

Here is Volkswagen's full statement to CNBC:

The SEC's complaint is legally and factually flawed, and Volkswagen will contest it vigorously. The SEC has brought an unprecedented complaint about securities sold only to sophisticated investors who were not involved and received all payments of interest and principal in full and on time. The SEC does not charge that person involved in the bond issuance knew that Volkswagen did not comply with U.S. The claims about Volkswagen AG's former CEO, who played no part in the sales. Regrettably, more than two years after Volkswagen entered into landmark, multibillion-dollar settlements in the United States with the Department of Justice, almost every state and nearly 600,000 consumers, the SEC is now piling on to try to extract more from the company. 19659013] —Reuters contributed to this report.

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