Daimler made $56 million in (bribe) improper payments to foreign officials

Article by Christian A., on August 29, 2010

The U.S. Securities and Exchange Commission claims that Daimler AG gained $1.9 billion in revenue and at least $91.4 million in profits from transactions that had been tainted by bribes.

Earlier this week, the SEC filed a suit asserting that Daimler made at least $56 million in improper payments to foreign officials in over 200 transactions.

According to court documents, Daimler intends to enter a $185 million settlement to resolve the claims by the SEC and the Justice Department. The carmaker's Russian and German units also will be pleading guilty to violating U.S. anti-bribery laws.

According to the proposed consent order, Daimler will neither admit nor deny SEC's charges, which claim that the illegal transactions span at least 22 countries in almost a decade.

SEC also claims that these improper payments involved at least 6,300 commercial vehicles and about 500 passenger cars, including luxury sedans given to senior foreign government officials.

The SEC alleges further that the payments were routed to U.S. bank accounts or to foreign bank accounts of shell companies in the United States.

The SEC cited an instance where Daimler sought to enter the Turkmenistan market and it wanted to get this done easily by giving two armored vehicles worth at least 550,000 euros to a senior government official. As a gift, Daimler also paid for a German translation of a book authored by the official.

If you liked the article, share on:

Comments

Recommended

Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 2017
Infiniti revealed its retro Prototype 9 race car before its slated debut at 2017 Pebble Beach Concours d'Elegance next week. In a recent press release, the company not only disclosed...
by - August 16, 2017
In the United States, not many automakers offer crossovers with a diesel engine option, but Chevrolet does, with their 2018 Equinox. Those who opt for this engine will get some...
by - August 16, 2017
Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries