Two Engineers, One Secret Deal
Most people hear about a big corporate deal after the stock has already moved. Two former Volkswagen engineers are accused of trading before everyone else did.
The confidential information centered on Volkswagen's planned $5 billion partnership with Rivian Automotive.
The two were in the U.S. on assignments from Germany for Volkswagen. They had both lived in San Jose, California.
What Prosecutors Allege
Prosecutors say the case follows a familiar pattern. The charges are conspiracy and securities fraud.
Conspiracy means agreeing with someone to break the law. Securities fraud means cheating in connection with buying or selling stocks.
Stamp is 31, and Plank is 45.
Prosecutors put Stamp's gains at $250,000. Plank's gains came to $50,000.
Prosecutors also say Plank shared the tip with a relative, who gained $12,000.
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A judge released each of them on a $500,000 bond.
A bond works as a financial guarantee that someone charged with a crime will show up for court. The $500,000 bond is a serious amount.
What Comes Next in Court
The dollar amounts may be small next to the $5 billion partnership, but the stakes for the two men are huge.
The case has already upended Stamp's life. His lawyer told the court that Stamp is unemployed and staying in an Airbnb with roommates because of it.
The lawyer also said Stamp will likely move to the New York area before trial. That trial could begin in early 2027.
The most serious charges carry up to 25 years in prison.
That is a heavy possible sentence for a scheme prosecutors say produced $300,000 combined.
For now, the government's version of events is just an accusation. Both men have denied it, and the case is a long way from a verdict.
Court records list the case as US v Stamp, 26-cr-316, in the Southern District of New York.
The Takeaway for Your Money
The dollar amounts here are small compared with the $5 billion partnership at the center of the case. But the lesson is not about the money.
When Rivian stock jumped 23% on the news, regular investors were reacting to information that had just become public. Prosecutors say the engineers were trading on the same information before it was public.
That announcement is when the rest of the market caught up to what the engineers already knew, at least according to prosecutors. They were allegedly trying to get ahead of that moment.
Insider trading laws exist to keep the market fair. The idea is that everyone should have a reasonably equal shot at the same information.
That gap is the whole point. It is also a reminder that a stock you own can move on information you simply don't have yet.
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