A West German fugitive accused of participating in a scheme which defrauded Volkswagen out of $292 million has been arrested in Hollywood, the FBI said today
Hans Joachim Schmidt, 38, had been sought since last March after West German authorities charged that he and other former Volkswagen employees defrauded the auto maker by manufacturing fake foreign currency deals. He was picked up Wednesday night at a Sycamore Avenue apartment. An FBI spokesman said Schmidt was captured without incident along with "a substantial amount of money." West German federal police believe Schmidt deposited some of the cash in secret bank accounts in Switzerland, where he first fled in a Volkswagen-owned aircraft. Schmidt will probably be returned to West Germany to stand trial, the spokesman said.