Diebold is headquartered in North Canton, Ohio and was incorporated in Ohio. Diebold is a self-service security and services corporation that sells, manufactures, and installs self-service transaction systems such as ATMs.
From 2005 through 2010, Diebold, through its agents and subsidiaries, bribed foreign officials with international leisure trips, entertainment, and other improper gifts in order to obtain and retain lucrative business with government-owned banks in China and Indonesia. During that same period, Diebold, through its Russian subsidiary, paid bribes in connection with the sale of ATMs to private banks in Russia.
On October 22, 2013, the Department of Justice entered into a three year Deferred Prosecution agreement (DPA) with Diebold charging the company with violating the anti-briber, and books & records provisions of the FCPA.
Under the DPA, Diebold agreed to pay a $25.2 million fine.
In a separate but related proceeding, Diebold also entered a final judgment with the Securities and Exchange Commission agreeing to pay $19,719,550 in disgorgement and $3,253,392 in pre-judgment interest. Both settlements with the DOJ and the SEC require the company to retain an independent compliance monitor.
In 2007, a regional government agency in China, the Chengdu Administration of Industry & Commerce ("CDAIC"), opened an investigation involving, among other issues, leisure trips and gifts Diebold China had provided to bank officials. Company executives in China and the U.S. learned of the investigation after a Diebold field office in Chengdu was raided by authorities. Executives A and B took the lead in responding to the investigation. Diebold was able to settle the matter with no corruption charges filed, by paying CDAIC an administrative penalty of 600,000 RMB (approximately $80,000) for business registration violations.
