The personnel chief of VW’s Czech subsidiary, Skoda, represented the company in India in 2005. He claimed that if the Indian state of Andhra Pradesh paid a $2.5 million deposit, that Skoda would locate a factory there. It was a scam. The personnel chief pocketed the money, and instead of using it to lay the foundation for a factory, he spent it on lavish and immoral personal expenses, including visits with prostitutes, sports cars, and payments to a mistress. The executive was convicted of corruption and embezzlement in 2010.