DOJ charges Siemens execs with $100 million bribery scheme

Ex-Siemens executives face bribery charges in an attempt to secure a $1 billion Argentine government contract

The U.S. Department of Justice has charged that six ex-Siemens executives bribed Argentine government officials in order to win a US$1 billion contract to provide national identity cards to the country's citizens.

"The allegations in this indictment reflect a stunning level of deception and corruption," said DOJ Assistant Attorney General Lanny Breuer, in a press conference held Tuesday.

The former Siemens executives charged with violations under the Foreign Corrupt Practices Act (FCPA) are Uriel Sharef, who was on the Siemens board of directors,Herbert Steffen, Andres Truppel, Urlich Bock, Eberhard Reichert, and Stephan Signer. None of the defendants currently work for Siemens. They each face up to 20 years in prison.

"This is the first time a former board member of a Global Fortune 50 company has been charged with FCPA violations," Breuer said.

The executives had planned to pay $100 million in bribes and had forked over $60 million, the DOJ said. The defendants face up to 20 years in prison. The DOJ filed the case in the U.S. District Court for the Southern District of New York.

Siemens, which is based in Munich, has already paid US$1.6 billion in fines in 2008 for money laundering. These current charges are against specific company executives and associated agents.

The charges stem from work around a $1 billion contract put up for bid by Argentina in 1994 to provide the nation's citizens with national identification cards. A consortium led by Siemens won the contract in 1998. The DOJ charges that from 1996 to 2009 the defendants, acting on behalf of Siemens, engaged in bribery, fraud and other forms of corruption to win, and then maintain the contract with the government.

They money was filtered to the government officials in various ways, including offshore shell companies, fake consulting contracts and large amounts of cash carried across national borders, the DOJ charged.

In a statement to the press, a Siemens official asserted that "the company is not indicted. We can't comment on proceedings against individuals." The DOJ said that company aided the agency in building its case against the former executives.

In addition, two other individuals who worked on behalf of Siemens were also charged, Carlos Sergi[cq] and Miguel Czysch[cq].

Siemens was charged with similar actions in Venezuela, Bangladesh, and Greece.

Joab Jackson covers enterprise software and general technology breaking news for The IDG News Service. Follow Joab on Twitter at @Joab_Jackson. Joab's e-mail address is Joab_Jackson@idg.com

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags Criminalsiemenslegal

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Joab Jackson

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?