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Posts Tagged ‘daimler bribery’

Justice Dept. Ending Oversight of Daimler

DoJ says maker cleaned up after bribery case.

by on May.30, 2013

Daimler CEO Dieter Zetsche and other senior execs will soon have the Dept. of Justice off their backs.

The U.S. Department of Justice is moving to wind up the bribery case it filed against Daimler AG more than three years ago. The DOJ has filed a motion to dismiss the case in Federal Court after being satisfied that the German industrial giant has reformed its internal code of conduct and business practices.

The corporate cleanup, which included the dismissal of senior executives, the demotion of others and appointment of an official with the authority to enforce the new anti-corruption dictates, followed a landmark settlement with the Justice Department.

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As part of the settlement, Daimler AG entered into a “”deferred prosecution agreement” and agreed to the accept a single charge that  the company conspired to violate the books and records provisions of the U.S. Foreign Corrupt Practices Act, along with one count of actually violating those provisions.


Stung By Bribery Scandal, Daimler To Hire Chief Integrity Officer

Move follows payment of $185 mil fine to U.S. DoJ.

by on Sep.29, 2010

Preventing further ethical lapses has a "high priority," says Daimler CEO Dieter Zetsche.

Stung by a $185 million fine for violating U.S. anti-corruption laws as the result of a global bribery scandal, Daimler AG said its moving to create a new position on the company’s board of management to oversee “Integrity and Legal.”

The new position was created by the German automaker’s supervisory board, which said the role of Chief Integrity Officer will be filled by an executive-level employee hired from outside the company.  The job duties will include managing Daimler’s global Legal and Compliance Organization and the related processes, as well as overseeing business ethics inside the company.

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“As a matter of principal, Daimler aims to create a corporate culture that not only fulfills the requirements of applicable law, but also meets the highest ethical demands and is regarded as exemplary throughout the industry. To achieve this goal, Daimler will successively take further initiatives in addition to establishing this new Board of Management position,” the company said in a statement.

Earlier this year, the Stuttgart-based company, parent of Mercedes-Benz and Smart, acknowledged a series of ethical breaches occurred despite having put in place an ethical behavior policy back in 1999.  Breaches – including the use of bribes to secure business in 22 countries — continued through 2008, according to the U.S. government, and eventually netted the company about $90 million.


Daimler to Drop New York Stock Exchange Listing

Thus ends its American journey.Critics say it pilfered Chrysler.

by on May.14, 2010

Reducing the complexity of financial reporting or limiting its liability in the U.S.?

Daimler AG (DAI) is ending its listing on the New York Stock Exchange. Daimler informed the NYSE by letter today that it would discontinue the listing of its shares, as well as the 8.50% notes due January 18, 2031 of Daimler Finance North America LLC.

Daimler’s primary listing will remain in Frankfurt.

In a statement Daimler said that trading volumes in the United States have been low, and during a twelve month period they amounted to an average of well below 5% of the worldwide trading volume.

Daimler will submit a request for delisting also to the United States Securities and Exchange Commission (SEC). After the delisting has become effective, Daimler will also apply to the SEC for deregistration of all its securities registered with the SEC and termination of its reporting obligations under the U.S. Securities Exchange Act of 1934.

Daimler said it wants to reduce the complexity of financial reporting as well as administrative expenses and fees.

“Daimler continues to place great importance on having an international shareholder base. The trading center for our shares, however, clearly is Frankfurt – and that is also the case for our international investors,” said Bodo Uebber, CFO of Daimler AG.

Last month Daimler agreed to pay more than $180 million in fines to close investigations with the Department of Justice and the Securities and Exchange Commission due to violations of the Foreign Corrupt Practices Act and the Securities Exchange Act of 1934.

Moreover, three of Daimler’s subsidiaries resolved charges related to anti-bribery issues. Under the terms of the settlement, Daimler and its subsidiaries will pay $93.6 million in criminal fines and penalties in connection with the DOJ’s investigation, and $91.4 in disgorgement of profits to resolve the SEC’s civil complaint.

Daimler Pays $185 Million in Fines for Bribary

Maker ignored its own anti-bribery provisions enacted in 1999.

by on Apr.01, 2010

Daimler AG has paid a $185 million fine to settle bribery charges in the U.S.

Daimler AG has agreed to a settlement with the U.S. Securities and Exchange Commission and the U.S. Department of Justice to close investigations of the company’s repeated violations of the Foreign Corrupt Practices Act, or FCPA – activities that involved the repeated use of bribes in countries around the world.

Under the terms of the settlements, Daimler will pay a fine of $93.6  million and civil disgorgement of profits of $91.4 million.

“These companies got the message and are taking the right steps to solve the problem,” U.S. District Judge Richard Leon said. “It is an appropriate and just resolution of this matter.”


Daimler Accused of Bribery

Senior executives knew, the U.S.Justice Department alleges.

by on Mar.23, 2010

Faced with bribery charges, Daimler is expected to plea bargain with the Justice Department.

Daimler AG’s reputation for corporate integrity is hanging by slender thread after the US Department of Justice filed an “information,” in federal court, charging  the German automaker with systematically paying millions of dollars in bribes to officials in 22 different countries, among them North Korea, to secure business over the last decade.

“Information” is different from a federal indictment but usually precedes a guilty plea by an individual or company. Indeed, while Chrysler has little to say about the action by the Feds, word is already circulating that Daimler has already agreed to plead guilty to conspiracy and pay more than $182 million in fines to Justice and the Securities Exchange Commission.

Global Reach?

The “criminal” activities  outlined in the court documents filed by the Justice Department were common during Juergen Schrempp’s tenure as Daimler’s chief executive but continued after even Dieter Zetsche took over from Schrempp in the summer of 2005.

Neither Zetsche nor Schrempp were accused of misfeasance in the information.

However, count one of the charges specifically states, “From in our about 1999, through in or about January 2008, within the territory of the United States  and elsewhere, defendant Daimler AG and others known and unknown did unlawfully, willfully and knowingly combine, conspire, confederate and agree with each other to commit an offense against the US, specifically to knowingly falsify and caused to be falsified books, records and accounts, which in reasonable detail, and would accurately and fairly reflect the transactions and disposition of the assets of Daimler AG.”     (more…)