Settlements

ST-7
ABB Ltd. (Matter #15) / Ali Hozhabri
ABB Ltd. (Matter #15)
United States
Securities and Exchange Commission
Mexico, Iraq (UN Oil-for-Food)
2008
08/06
Unknown
Individual
Civil
Consent to Permanent Injunction
Disgorgement of Profits
$234,357.00
$234,357
$0
$0
$0
Art.16
Art. 1, Art. 2, Art. 8
Bribery of foreign officials, Books and records violations, Internal controls violations, Aiding and abetting ABB's falsification of books and records
No admission or denial of alleged offenses
Yes
According to the Litigation Release by the US Securities and Exchange Commission, "As alleged in the complaint, Hozhabri was a project manager for ABB Network Management ("ABB NM"), a division of a U.S. based ABB subsidiary, which provides products and services for managing power generation and transmission networks. The Commission alleges that, from 2002 through 2004, Hozhabri fraudulently submitted approximately $468,714 in cash and check disbursement requests to ABB NM for purported business expenses associated with projects in Brazil, Paraguay, and the United Arab Emirates. As alleged in the complaint, these purported expenses were phony, and inaccurately recorded as legitimate business expenses in ABB's books and records. The Commission further alleges that the funds disbursed by ABB NM as a result of these requests were not used to pay any business expenses, but rather were embezzled by Hozhabri and the former General Manager of ABB NM. According to the complaint, Hozhabri personally kept $234,357 of the embezzled funds." (Source: US Securities and Exchange Commission, Litigation Release No. 20671 / August 6, 2008, SEC v. Ali Hozhabri, Civil Action No. 08 CV 1359 (D.D.C.), "SEC Charges Former ABB Project Manager for Falsifying Company's Books and Records.")