NEW YORK/WASHINGTON: A grand jury indicted a senior manager at Fiat Chrysler Automobiles NV on charges he lied to regulators about diesel emissions, alleging the deception continued even after a scandal over cheating on government environmental tests had engulfed rival Volkswagen AG .
Palma, a 40-year-old Italian citizen, was arrested by the FBI Tuesday morning at his home in Bloomfield Hills, Michigan. In the afternoon, he appeared before a federal judge in Detroit in shackles, a hooded sweatshirt and sweatpants. Magistrate Judge Elizabeth Stafford released him on a US$10,000 unsecured bond and ordered him to surrender his passport.
After the disclosure of Volkswagen's emissions fraud in September 2015, the indictment states that the U.S. Environmental Protection Agency asked Fiat Chrysler for more testing of its diesel vehicles. In November 2015, the EPA warned Fiat Chrysler that it suspected some of its vehicles were using secret software to defeat emissions tests.
"The indictment in this case should signal to corporations and individuals working for them that there are significant consequences for attempting to bypass U.S. emissions tests and defraud the American people,” said Special Agent in Charge Steven M. D'Antuono of the FBI’s Detroit Field Office in statement.
The settlement did not resolve any potential criminal liability, the Justice Department said when unveiling the agreement. The renewed focus from U.S. prosecutors on Fiat Chrysler's alleged emissions violations follows cases against Volkswagen and a number of that automaker's current and former executives over use of illegal software to fool government diesel-emissions tests and mislead regulators and consumers.
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