Daimler said to settle U.S. bribe case for $185 mln
Daimler AG will pay $185 million to resolve criminal charges by the U.S. government that it violated the Foreign Corrupt Practices Act, according to a person familiar with the litigation.
The U.S. government alleged that the maker of Mercedes-Benz cars and trucks made hundreds of improper payments to government officials in at least 22 countries to win contracts to sell hundreds of millions of dollars in vehicles, according to papers filed in federal court in Washington.
"In some cases, Daimler wired these improper payments to U.S. bank accounts or foreign bank accounts of U.S. shell corporations in order to transmit the bribe," according to the 76-page criminal complaint.
Daimler will pay $93.6 million to the Justice Department and $91.4 million to the U.S. Securities and Exchange Commission, the person said. Daimler won't plead guilty to any charges as part of the deal, according to the person.
Two Daimler subsidiaries, based in Germany and Russia, will plead guilty on April 1 to conspiring to and violating the anti- bribery provisions of the FCPA, the person said. Daimler and a Chinese subsidiary will agree to a deferred prosecution agreement to avoid guilty pleas, the person said.
Court Hearing
Ute Vellberg, a spokeswoman for the Stuttgart, Germany- based company, said there would be a court hearing in Washington on April 1. She declined to comment further.
Laura Sweeney, a spokeswoman for the Justice Department, declined to comment on the accord. SEC spokesman John Heine also declined to comment.
The Foreign Corrupt Practices Act makes it a crime for companies with U.S. operations to pay bribes to foreign officials. Under that law, those companies are also required to keep accurate books and records.
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