VW CURRENCY DEPARTMENT FORMER HEAD ARRESTED
The former chief of
foreign exchange at Volkswagen AG <VOWG.F> has been arrested in
connection with a scandal which may have cost the car maker a
quarter of a billion dlrs, the chief state prosecutor Carl
Hermann Retemeyer said.
    He told Reuters that Burkhard "Bobby" Junger was arrested
yesterday for suspected embezzlement.
    "There is reason to believe that Junger could have evaded
justice, and investigating magistrates therefore asked for his
arrest," Retemeyer said.
    VW fired Junger in March, after news emerged of the
suspected foreign exchange swindle. In January the board gave
him leave of absence. Six other people have been suspended.
    VW said last month computer programs were erased and
documents faked in the possible fraud, in which it believes
transactions meant to protect it against foreign currency
losses were not completed.
    Retemeyer said, "We are still investigating a larger circle
of people, among them Frankfurt currency dealers"
    He would not comment whether other arrests could be
expected.
    The possible fraud resulted in a major management shake-up
with the resignation of Rolf Selowsky, management board member
in charge of finance, who assumed managerial responsibility for
the affair.
    Retemeyer said last month he wanted to question
Frankfurt-based money broker Joachim Schmidt, who may be able
to give more details.
 Reuter
