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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags legalsiemensCriminal

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?