U.S. District Judge Richard Leon approved a $185m settlement between Daimler, the Department of Justice (DOJ,) and the Securities and Exchange Commission (SEC). The Feds had alleged that Daimler violated the U.S. Foreign Corrupt Practices Act (FCPA) by drowning foreign government officials in money and gifts until they relented and ordered Daimler products. According to Reuters, Daimler’s German and Russian units each agreed to plead guilty to two minor counts of violating U.S. anti-bribery laws. Its China subsidiary will be subject to the two-year deferred prosecution agreement as well. That said, the bad boys from Sindelfingen may go forth and sin no more. Except for one niggling detail …
Daimler was let off by agreeing that former FBI Director Louis Freeh will serve as the independent monitor to oversee Daimler’s compliance with anti-bribery laws. Having a permanent spy in the house will make Daimler jump with joy.
The SEC made a solid case that crime doesn’t pay: $56m in bribes resulted in $91.4m in allegedly illegal profits. With the settlement money paid, Daimler is $150m in the hole. On top of that, they have to pay, wine, dine, and entertain Freeh ….
7 Comments on “Judge Gives O.K. To Daimler Settlement...”
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Daimler is a German based company with headquarters in Germany. The Russian, German and Chinese branches were involved with bribary. How in the hell does the US have any jurisdiction in the matter? Shouldn’t it be the EU? Or doesn’t the EU have sanctions against bribary (which kinda makes sense considering the history of european governments)?
Follow the “two minor counts” link in the story above and you will get the whole messy background ….
They ran the bribes through U.S. banks, thus making themselves liable under American law. The stupidity and arrogance of this company never ceases to amaze me.
Jeez. Just about everything goes through or involves U.S. mega-banks, so we’re not only the world’s policeman, we’re the world’s court system too? Where do we go to resign?
Can’t remember ever reading a better description of bribery than “drowning foreign government officials in money and gifts until they relented and ordered Daimler products”. Thank you Bertel!
Everyone at Daimler will call Freeh the “Bond Company Stooge” but by the time they’re hijacked and he’s kidnapped by pirates, they’ll have warmed up to him enough to feel obligated to to go rescue him. Of course, being broke, they’ll have to ‘borrow’ some stuff from BMW first.
Kudos to auditor David Bazzetta who blew the whistle on his employer to the U.S. Labor Department.