FTC Probe Questions VW’s Lost, Erased Cell Phones in U.S.

The Federal Trade Commission wants to further question Volkswagen AG officials in the U.S. about 23 missing or erased cell phones that belonged to “important individuals” of interest in its criminal investigation into VW’s diesel emission cheating scandal.

In a filing with the U.S. District Court in San Francisco, the FTC says the missing or “wiped” phones are “a bright red flag” of possible wrongdoing. The motion adds that the commission “should not have to accept VW’s assurance that there is nothing to see.” A hearing on the request is scheduled for Dec. 22.

The filing also complains that VW’s designated witness, Manual Sanchez, was unable to answer more than 250 of its questions, according to Bloomberg. The news service reports that the FTC claims Sanchez provided “nonsensical or evasive” responses about the phones and whether VW had destroyed evidence.

VW contends the FTC is trying to gain “protected information” about the cheating scandal still being collected by a VW-backed investigation by the U.S. law firm Jones Day. The company also says the commission’s new motion is an attempt to apply “litigation pressure” to VW as it negotiates a settlement covering about 80,000 V-6 diesels found by regulators to evade emission tests.

The company reached a separate $15.3 billion settlement in June covering fines and restitution for rigging 475,000 of its 4-cylinder diesels in the U.S. to cheat on nitrogen oxides pollution tests.

One legal expert tells Bloomberg that VW’s resistance might prompt the FTC to accuse the company and its executives of obstructing justice.