• Mar 23, 2010
Over the past five years, the U.S. Department of Justice along with the Securities and Exchange Commission have been investigating allegations that German automaker Daimler and three of its subsidiaries paid tens of millions of dollars in bribes through offshore bank accounts to secure contracts for its vehicles.

According to court documentation released today, the bribes took place between 1998 and 2008 in at least 22 countries that included China, Russia, Egypt and Greece. In one such case, it is alleged that Daimler made payments to officials in Iraq under the Oil for Food program.

According to The Associated Press, Daimler has agreed to pay $93.6 million to the Justice Department and $91.4 million to resolve the SEC's civil lawsuit. Further, Daimler units in Germany and Russia have reportedly agreed to plead guilty to conspiring and violating antibribery provisions of the U.S. Foreign Corrupt Practices Act. A hearing has reportedly been scheduled for April 1st, so consider this story "developing..."

[Source: The Associated Press via Google | Image: Sascha Schuermann/AFP/Getty Images]


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  • 25 Comments
      • 4 Years Ago
      That 200 million is probably just a portion of the cost of this FCPA investigation to Daimler. I worked for a firm that did these and when we got one it was like winning the lottery, the fees were off the charts.
      • 4 Years Ago
      So this is why they sold their stake in Tata. Progress.
      • 4 Years Ago
      I posted about the barn in Mooresville where they filmed Days of Thunder. Just thought you might be interested?
      http://secretsforhappyness.blogspot.com/
      • 4 Years Ago
      I knew it!!! They are shady! Daimler is largely the reason Chrysler is in the shape it is in now. What was supposed to be a "merger of equals" turned out to be a seizure of all of Chrysler's assets, and then a kicking to the curb and left for dead. What goes around comes around!
      • 4 Years Ago
      you call it bribes i call it lobbying lol....

      I think its business as usual i have yet to be involved in a company that bribes are not exchanged...
      • 4 Years Ago
      Probably where the billions of dollars they stole from Chrysler went lol
      • 4 Years Ago
      The article should read:

      ""Daimler has agreed to BRIBE the Justice Department with $93.6 million and BRIBE the SEC with $91.4 million to resolve the SEC's civil lawsuit. Further, Daimler units in Germany and Russia have reportedly agreed to plead guilty to conspiring and violating antibribery provisions of the U.S. Foreign Corrupt Practices Act because it cramps the style of the comporations in the US.

      A hearing has reportedly been scheduled for April 1st, so consider this story "developing..."...until the crooks in all parties can resolve the "who gets what money" part.
        • 4 Years Ago
        Ah, Noz. Taking time off from being ignorant over on AB:G to bring your road show over to the Dark Side, I see.

        Capitalism is the essense of "dog eat dog" profitability. When it's done according to law, it normally works...IF the laws are designed to prevent non-capitalistic practices, like bribery and such.

        Also, to argue both sides, just to put you down...there are many countries where bribery is not only legal, but an accepted busines practice. The US, Russia and Germany, however, are not examplkes of those countries.

      • 4 Years Ago
      They screwed up Chrysler.
      • 4 Years Ago
      What's wrong with those guys? Who do they think they are? Congress?
      • 4 Years Ago
      You stay classy Daimler.

      • 4 Years Ago
      So if this was an international thing, why is the U.S. entitled to all the money?

      Trying to cut back on the U.S. Deficit maybe?
        • 4 Years Ago
        Because Daimler's stock trades on the NYSE it is subject to the US Foreign Corrupt Practices Act. If other countries have similar laws and similar jurisdiction, they would be entitled to take action as they choose.
        • 4 Years Ago
        @Jimbo: you are asking people to read the article they are commenting about, before they make comments? That's just crazy talk, crazy I tell you!
        • 4 Years Ago
        Read the damn article. The U.S. gets the money because the bribes were coming from U.S. bank accounts and the bank accounts of U.S. shell companies.
      • 4 Years Ago
      If you were wondering about the Chrysler connection, it seems to have been honesty.

      "In July 2005, DaimlerChrysler settled a 2004 wrongful-firing suit filed in U.S. District Court in Detroit by former Chrysler accountant David Bazzetta. Bazzetta claimed he was fired in January 2004 in part because he talked to superiors about as many as 40 secret bank accounts maintained by the Mercedes unit to bribe foreign government officials.

      From The Detroit News: http://detnews.com/article/20100323/AUTO01/3230432/Daimler-to-pay-$185M-over-bribery#ixzz0j7trTG8P"
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