• Munich prosecutors’ investigation now extends to 20 people • Second Audi board member also added to list of suspects

The head ofVolkswagen AG’s Audi brand was named a suspect in a Munich probe of diesel rigging, placing another senior executive under a cloud of suspicion almost three years after the company admitted to cheating on emissions tests.The homes ofRupert Stadler and another Audi board member were raided Monday, prosecutors said in an e-mailed statement. Both men are being investigated for fraud and falsifying public documents relating to sales of diesel cars in Europe.The second suspect isBernd Martens, the head of purchasing at Audi, according to a person familiar with the investigation who declined to be identified because prosecutors didn’t disclose the name. Martens led a diesel task force at Audi, which was set up to coordinate the handling of the diesel crisis with the parent company.

VW has faced a barrage of investigations and lawsuits since U.S. authorities disclosed in September 2015 that the carmaker had rigged engines on 11 million diesel models to cheat on emissions tests. The company has earmarked more than 25 billion euros ($29.5 billion) to pay fines, settlements and other costs since the scandal came to light.

Audi, Volkswagen’ largest earnings contributor, has been linked to all three German criminal probes into diesel rigging. Stadler has previously been implicated by two engineers who are also under investigation. Monday’s announcement comes only a month after Audi was raided for a third time.

20 People

Two former managers at the luxury carmaker are being held in pre-trial detention in Munich. Among them is Giovanni Pamio, who has testified about the rigging allegation at Audi. The Munich probe now extends to 20 people linked to the company.

VW spokesman Nicolai Laude said the company won’t comment on open investigations. A spokesman for Audi says the company is fully cooperating with authorities. Stadler’s lawyer, Thilo Pfordte, didn’t immediately reply to an email seeking comment. A call to Audi requesting a comment fromMartens wasn’t immediately returned.

Stadler, who added the title of head of group sales at VW in April, is the only active company board member who is a target in a probe directly tied to the diesel rigging allegations. VW CEOHerbert Diess is being looked at in a different probe over market-manipulation allegations for failing to disclose the scandal to investors at an early stage. Diess has denied the allegations.

Stadler, who became Audi chief in 2007 and joined Volkwagen’s executive board in 2010, survived several recent management overhauls despite emerging allegations that he was informed about the scam.

Nearly three years on from the scandal, a suspicion over emissions practices continues to envelop the industry. Daimler AG CEODieter Zetsche on Monday is meeting for the second time in as many weeks with Germany’s transport ministry to explain irregularities in its exhaust setups in diesel engines.

--With assistance fromChristoph Rauwald.

To contact the reporter on this story: Karin Matussek in Berlin atkmatussek@bloomberg.net

To contact the editors responsible for this story: Anthony Aarons ataaarons@bloomberg.net Christopher Elser,Chad Thomas