They bought the stock. They sold it high. Then they Googled their own defense.
Two ex-Volkswagen Group engineers, Michael Stamp and Marcus Plank, are now in federal custody. The US Department of Justice doesn’t mince words here. They are accused of conspiracy and securities fraud. The core of the allegation? They traded on secret knowledge that VW was teaming up with Rivian. They moved before anyone else in the market had a clue.
How The Deal Broke Open
The timeline is where the case gets ugly.
Volkswagen and Rivian officially announced their joint venture on June 26, 2014. Wait, no. June 26, 2024. The market reaction was immediate. Rivian’s stock didn’t just climb; it jumped 23 percent.
Stamp and Plank, however, were already positioned. Bloomberg reports that both men bought Rivian stock and options. They did this after allegedly learning VW planned this strategic alliance. Crucially, this happened before the news went public. They saw the checkmate before the board was even flipped.
The Numbers Don’t Lie
Prosecutors are focusing on the profits. A lot of them.
When the news hit, Stamp cashed out. He sold into the surge, netting roughly $250,000. Plank’s cut was smaller but still significant—around $50,000. Together, they made more than $300, 000.
It didn’t stop there. The reach of insider tips can be long and winding. Plank allegedly passed this non-public information to a close family member. That relative went ahead and traded Rivian shares. That specific trade pocketed another $12,000.
It wasn’t just a couple of quick trades. It was a coordinated extraction of value from information that belonged to the public, but not yet to them.
“Statute of Limitations” Searches
If you’re going to break the law, don’t leave a digital footprint, right?
Except that’s exactly what they did.
According to the Department of Justice, the behavior preceding the announcement was telling. Just eight days before the deal was revealed to the public, Michael Stamp performed a Google search for: “statute of limitations insider trading”.
Let that sink in. Eight days.
And after the news broke? A member of Plank’s family, searching in German, looked up “how is insider trading prosecuted.”
You can try to hide, but your curiosity is loud.
Why It Matters for EV Investors
“When people misuse confidential information for their ownfinancial gain, they undermine the principles that allows our markets to function fairly and efficiently.”
— Jay Clayton, US Attorney
Jay Clayton didn’t hold back. The message from the prosecutors is clear. This isn’t just a white-collar fine waiting to happen. It’s about the integrity of the market. When insiders exploit employer confidentiality for personal gain, they cheat every other shareholder. New Yorkers want this pursued with vigor, according to Clayton.
The Stakes Are High
Being caught isn’t a slap on the wrist.
Both Stamp and Plank face federal securities fraud charges in New York. If convicted, the sentence isn’t probation. They each face up to 25 years in prison.
Twenty-five years. For trading a stock based on a leaked corporate strategy.
The engineers are charged. The money has been traced. The Google searches are on record. Now comes the trial.
Whether they claim they just got lucky or say it was a mistake, the digital paper trail suggests otherwise. The market hates uncertainty, but it hates fraud more. The wheels are turning in Manhattan. We’ll see if justice moves faster than the EV supply chain.
Or maybe it won’t. Time will tell.
