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Porsche’s former chief financial officer has been convicted of credit fraud by a German court in a criminal case relating to a failed 2009 bid by the sports car maker to buy Volkswagen.

Bloomberg reports Holger Haerter was convicted and fined 630,000 euros ($874,000) after a Stuttgart judge ruled the former executive downplayed Porsche’s liquidity needs and failed to disclose an accurate figure of put options the German manufacturer held on Volkswagen shares during loan negotiations with BNP Paribas about the bank’s 500 million-euro share of a syndicated 10 billion-euro loan that was part of the failed 2009 bid.

Stuttgart Regional Court Presiding Judge Roderich Martis said, “The information given by the defendants was wrong”.

“It doesn’t matter that they gave the correct information earlier in the process. It’s true also in normal life that a lie doesn’t disappear just because you once said the truth some time before.”

Holger Haerter

Haerter said he would appeal the conviction.

“Many things said by the court today were wrong,” Haerter said. “We are sure we will win.”

On August 1, 2012 Volkswagen AG acquired the remaining 50.1 per cent stake in Porsche Automobil Holding SE’s car making business for 4.46 billion euros, after purchasing a 49.9 per cent stake in 2009 following Porsche’s failed takeover bid.

The news comes only weeks after three former Saab executives, including the Swedish company’s former CEO, were arrested as part of an accounting fraud investigation.

  • Guest

    I haven’t seen this much drama since Verboten Liebe.

  • Smart US

    so he got pocket money slap on the wrist – i thought since Steffy’s father was in jail over financial fraud Mr Haerter would face jail term too… disappointing outcome… not to mention the Porsche CEO that knew about VW takeover of Porsche – he heavily invested in VW shares that is pure inside trading – what happened to him – retired somewhere in Alps laughing how life’s so good or perhaps Thailand – dream retired german destination – shame on you german law

    • guest

      The whole takeover thing was very messy, especially when a state government got involved. And the VW works councils were also critical of some things.

      The deal made sense, but would always be seen as tricky given the fact that the families were involved, eg, the Piech and Porsche families (after all, Louisa Piech helped to set up Porsche).

      Ferdinand Piech was close to the Porsche siblings (Gerd, Butzi, Wolfgang and Hans-Peter) and worked with Ferry on some projects (eg, 906, 917 and even on the 901).

      • Smart US

        well inside trading is more criminal than a murder (if you not CEO)… there was this Aussie guy in USA who made some $7k (yeah just $7k) on some inside trading info he had and shared with roomies – well he got some nice few years to think about it all in jail house… so unless even CEO gets jail term – what is this all about???