Denis J. McInerney, Chief, Fraud Section, Criminal Division
Nicholas S. Acker, Trial Attorney, Fraud Section, Criminal Division
Mark F. Mendelsohn, Deputy Chief, Fraud Section, Criminal Division
John S. Darden, Assistant Chief, Fraud Section, Criminal Division
US Assisting Agencies:
U.S. Securities and Exchange Commission
Foreign Enforcement Action/Investigation:
Unknown
Foreign Assistance:
Unknown
Origin of the Proceeding:
Whistleblower
Whistleblower:
Yes (Auditor at then-Daimler unit DaimlerChrysler Corp)
Case Status:
Resolved
Summary
Daimler AG ("Daimler") was a German vehicle manufacturing company with business operations throughout the world. Among other things, Daimler sold all manner of cars, trucks, vans, and buses, including Unimogs, heavy duty all terrain trucks primarily used for hauling, and Actros, large commercial tractor/trailer-style vehicles. DaimlerChrysler China Ltd. ("DCCL") was a Beijing-based, wholly-owned Daimler subsidiary and cost center that managed Daimler's business relationships in the People's Republic of China ("China"), assisted Daimler in selecting and managing its joint ventures in China, and helped manage Daimler's expatriate employees in China.
According to the DOJ Information, from 2000 to 2005, DCCL employees and Daimler employees acting through DCCL made at least €4,173,944 in improper payments in the form of "commissions," delegation travel, and gifts for the benefit of Chinese government officials or their designees, in connection with over €112,357,719 in sales of commercial vehicles and Unimogs to Chinese government customers. The improper payments were made directly from Daimler's commercial vehicles and Unimog divisions in Germany through various intermediaries with the assistance of DCCL employees in the commercial vehicles division.
On March 22, 2010, the DOJ filed an Information against DCCL, charging the company with conspiracy to violate the anti-bribery provisions and violating the anti-bribery provisions of the FCPA. Around the same time, DCCL entered into a deferred prosecution agreement with the DOJ. DCLL was not ordered to pay any monetary penalty.
In a related action, Daimler entered into a deferred prosecution agreement with the DOJ and agreed to pay a $93,600,000 penalty. Any penalty paid by Daimler subsidiaries in connection with their related guilty pleas and plea agreements with the DOJ will be deducted from Daimler's $93,600,000 fine.
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