Prosecutors Raid Porsche Headquarters Seeking Evidence Of Stock Manipulation

 Porsche SE, the sports-car maker being bought by Volkswagen AG, was raided by German prosecutors in an investigation of possible violations of securities law and market manipulation.

Officials seized documents from the Stuttgart headquarters this morning, Porsche said in a statement. The carmaker said it rejects the allegations and is cooperating with German authorities. BaFin, the regulator, handed a complaint to the prosecutor’s office after a probe into Porsche’s attempt to gain control of VW, said Anja Engelland, an agency spokeswoman. BaFin also is examining movements in VW securities in “recent days.”

Prosecutors are investigating former managers of Porsche including ex-Chief Executive Officer Wendelin Wiedeking and former Chief Financial Officer Holger Haerter, Die Welt reported earlier today. The two men, who left the company last month, “have declared full readiness to cooperate” with prosecutors, Porsche spokesman Frank Gaube told Bloomberg News.

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sdcarguy - 8/20/2009 3:26:26 PM

+3 Boost

Oh scheisse!

theoptimisticpessimist - 8/20/2009 3:38:49 PM

-3 Boost

Porsche upper management should be in jail, not for stock manipulation, but what they did to Porsche.

B7FAN - 8/20/2009 4:27:02 PM

+1 Boost

What do you mean "what they did to Porsche"??????????????

theoptimisticpessimist - 8/20/2009 5:01:12 PM

-2 Boost

Porsche is now owned by VW and the UAE, while Porsche has alway had a closer relationship the VW group, the Porsche family has been making most of the right choices; not so any more. It was the most profitable and in the black car company to a failed hedge fund the tried and failed to take of VW. In addition the 1998 air-cooled 911 is still a better drivers car the current 997 variation.

Bmw8ter - 8/20/2009 5:38:26 PM

+7 Boost

Geez Porsche:

-$28k per car, profit
-Stupid claims against the GTR's N-Ring time
-A mountain of debt from attempting to takeover VW
-Now possible stock manipulation

What a sight for sore eyes.

JRobUSC - 8/20/2009 6:21:55 PM

+2 Boost

let's be fair -- they weren't making $28k in profit from the sale of each car. The profits were primarily from investment returns (much of which was from owning VW stock). Dividing the total profit among the total number of cars sold yielded that extremely high "average profit per vehicle" figure, but most of that had nothing to do with the sale of the car itself. When their investments were rocking and rolling they could have sold every car at a loss and still showed a higher profit per car than every other brand.