Former Porsche CFO to Stand Trial on Fraud Charges

A German regional court in Stuttgart has ruled that Holger Haerter, former CFO of Porsche Automobil Holding SE, and two other former managers will go to trial on charges of fraud. No trial date has been set.

The executives are accused of fraudulently understating Porsche's liquidity needs by €1.4 billion in 2009 when persuading bankers to renew a €10 billion loan. Haerter denies the charges.

Porsche took on €10 billion in debt in 2008 when it amassed enough options to gain a controlling stake in Volkswagen AG. When the attempt collapsed the following year, Porsche was left with a pile of options and debt.

Prosecutors allege that the three executives misled bankers about how much liquidity the company would require if it exercised the options.

A German court rebuked Porsche board member Ferdinand Piech in February for committing a "grave violation" of his duties to shareholders. Piech said in 2009 he didn't know how risky the options were and hadn't tried to find out. He also is chairman of VW.