Robert A. Zink, Chief, Fraud Section, Criminal Division
Andrew Gentin, Assistant Chief, Fraud Section, Criminal Division
Michael Culhane Harper, Trial Attorney, Fraud Section, Criminal Division
James Mandolfo, Trial Attorney, Fraud Section, Criminal Division
David Abramowicz, Assistant United States Attorney
Juliana Murray, Assistant United States Attorney
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Ongoing
Summary
Telefonaktiebolaget LM Ericsson (“Ericsson”) was a multinational networking and telecommunications equipment and services company headquartered in Sweden. Ericsson’s common shares were registered with the SEC and traded on the NASDAQ. Ericsson operated through a variety of subsidiaries including Ericsson AB (“EAB”) and Ericsson Egypt Ltd.
Afework Bereket was an employee of Ericsson Egypt and an agent of Ericsson. Bereket was on a long-term assignment with a branch of EAB in Africa, where he served as the account manager for the Horn of Africa, a region that included Djibouti.
According to the documents in this case, between 2010 and about January 2014, Bereket conspired with others, including Ericsson, Ericsson Egypt, and EAB, in a scheme to bribe foreign officials in Djibouti in order to obtain and retain business with the state-owned telecommunications company of Djibouti. Bereket and his coconspirators are alleged to have paid bribes totaling approximately $2,100,000 to at least three officials in Djibouti, including two high-ranking officials in the executive branch of the government and a high-level executive at the state-owned telecom company. In all, the scheme secured contracts for Ericsson valued at approximately €20,300,000.
On June 3, 2020, the DOJ filed a two count indictment under seal in the Southern District of New York against Bereket alleging a conspiracy to violate the antibribery provisions of the FCPA as well as a conspiracy to commit money laundering. The case was unsealed on September 8, 2021. This case is ongoing.
In related proceedings, the DOJ and SEC filed criminal and civil proceedings, respectively, in the Southern District of New York against Ericsson in December 2019. In all, Ericsson settled for a fine of just over $1 billion.
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