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U.S. v. Daimler Export and Trade Finance GmbH

 
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Daimler - Daimler Export and Trade Finance GmbH
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DOJ Criminal
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April 1, 2010
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U.S. v. Daimler Export and Trade Finance GmbH
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U.S. v. Daimler Export and Trade Finance GmbH, No. 10-cr-65 (D.D.C. 2010)
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With a combined fine of $185 million, the Daimler case is one of the largest FCPA dispositions ever. Daimler's conduct is particularly notable for the wide range of countries involved as well as the numerous different means and methods for making corrupt payments.�
The disposition of the case against the Daimler Export and Trade Finance GmbH�subsidiary is significant because�the Daimler parent company only admitted to violating and conspiring to violate the books and records provisions of the FCPA, while Daimler Export and Trade Finance GmbH and other subsidiaries admitted to anti-bribery violations.�
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Croatia
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2002; 2003; 2004; 2005; 2006; 2007; 2008
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Officials in the Croation Ministry of the Interior and employees of IM Metal, a company controlled by the Croation goverment
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Daimler Export and Trade Finance GmbH (“DETF”), a finance-oriented subsidiary of Daimler AG, the German vehicle manufacturer, paid bribes to Croatian government officials in order to secure the sale of fire trucks to the Croatian government. 
Between 2002 and 2008, DETF paid approximately €3.02 million to IM Metals, a Croatian government-controlled company, with the understanding that some or all of the funds would go to IM Metals officials or other Croatian government officials to secure a large sale of fire trucks to the Croatian Ministry of the Interior.
Between 2002 and 2008, DETF also paid €1,673,349 to two U.S.-based shell companies with the understanding that these funds would be passed on to Croatian government officials to secure the sale of fire trucks to the Ministry of the Interior.  The payments were disguised as consulting fees, but the companies performed no legitimate services to warrant the payments.
DETF pled guilty to violating the anti-bribery provisions of the FCPA and conspiracy to violate the anti-bribery provisions of the FCPA. The parent company, Daimler AG, accepted responsibility for violating the books and records provisions of the FCPA and conspiracy to violate the books and records provisions of the FCPA and entered into a deferred prosecution agreement with the DOJ.
Under the terms of its agreement with the DOJ, Daimler AG must hire an independent monitor for three years to oversee the implementation of a robust compliance program and make a series of reports to the company and the DOJ.  If Daimler AG complies fully with its agreement for a period of two years and seven days, the DOJ agrees not to bring any other charges based on this underlying conduct or other conduct that Daimler AG disclosed to the DOJ.
Daimler AG and its subsidiaries also must pay $93.6 million as a fine.  Separately, Daimler AG agreed to pay $91.4 million in disgorgement to settle civil charges brought by the SEC.
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Anti-bribery (Other Persons), Conspiracy - Anti-Bribery
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Plea, Subject to Deferred-prosecution Agreement
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This sanction consisted of: $93,600,000 penalty for Daimler and all of its subsidiaries.
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93,600,000
:
0
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Total Offense Level: 36 (Base Offense of 12 plus Specific Offense Characteristic of 2 for multiple bribes plus Specific Offense Characteristic of 22 for a benefit received betwen $20 and $50 million with a U.S. nexus).� Total Culpability Score:�4 (Base Culpability Score of 5 plus 1 because the organization has 10 or more employees and an individual withinsubstantial authority personnel participated in, condoned or was willfully ignorant of the violation minus 2 for cooperation and acceptance of responsibility).�
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Other Person
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Foreign
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Contract Procurement/Retention
:
120,000,000
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Wire/check
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Shell entity
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6,500,000
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No