Settlements

ST-320
Siemens AG (United States / SEC)
Siemens AG
United States
Securities and Exchange Commission
Argentina, Bangladesh, China, Iraq (UN Oil-for-Food), Israel, Mexico, Nigeria, Russia, Venezuela, Vietnam
2008
12/15
Germany, World Bank
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits
$350,000,000.00
$350,000,000
$0
$0
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Bribery of Foreign Officials, Internal Controls Violations, Falsification of Books and Records
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission Litigation Release, on December 12, 2008, the Commission filed a settled civil complaint which alleged that "Between March 12, 2001 and September 30, 2007, Siemens violated the FCPA by engaging in a widespread and systematic practice of paying bribes to foreign government officials to obtain business. Siemens created elaborate payment schemes to conceal the nature of its corrupt payments, and the company's inadequate internal controls allowed the conduct to flourish. The misconduct involved employees at all levels, including former senior management, and revealed a corporate culture long at odds with the FCPA. During this period, Siemens made thousands of payments to third parties in ways that obscured the purpose for, and the ultimate recipients of, the money. At least 4,283 of those payments, totaling approximately $1.4 billion, were used to bribe government officials in return for business to Siemens around the world. Among others, Siemens paid bribes on transactions to design and build metro transit lines in Venezuela; metro trains and signaling devices in China; power plants in Israel; high voltage transmission lines in China; mobile telephone networks in Bangladesh; telecommunications projects in Nigeria; national identity cards in Argentina; medical devices in Vietnam, China, and Russia; traffic control systems in Russia; refineries in Mexico; and mobile communications networks in Vietnam. Siemens also paid kickbacks to Iraqi ministries in connection with sales of power stations and equipment to Iraq under the United Nations Oil for Food Program. Siemens earned over $1.1 billion in profits on these transactions. An additional approximately 1,185 separate payments to third parties totaling approximately $391 million were not properly controlled and were used, at least in part, for illicit purposes, including commercial bribery and embezzlement." The Litigation Release also noted that Siemens consented to the SEC "ordering it to pay $350 million in disgorgement of wrongful profits, which does not include profits factored into Munich's fine." The Litigation Release also noted that assistance was provided to the SEC investigation by the Office of the Prosecutor General in Munich, Germany; the U.K. Financial Services Authority; and the Hong Kong Securities and Futures Commission. (Source: US Securities and Exchange Commission Litigation Release No. 20829 / December 15, 2008, Securities and Exchange Commission v. Siemens Aktiengesellschaft, Civil Action No. 08 CV 02167 (D.D.C.), "SEC Files Settled Foreign Corrupt Practices Act Charges Against Siemens AG for Engaging in Worldwide Bribery With Total Disgorgement and Criminal Fines of Over $1.6 Billion.")