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U.S. v. Diebold, Inc.

 
:
Diebold, Inc.
:
DOJ Criminal
:
October 22, 2013
:
U.S. v. Diebold, Inc.
:
U.S. v. Diebold, Inc., 5:13-cr-00464 (N.D. Oh. 2013)
:
The allegations regarding conduct in Russia did not pertain to bribes to government officials, but to privately-owned entities. Diebold was therefore only charged with books and records offenses for that conduct.
:
Manufacturing-Other/Multi
:
China, Russia
:
2005; 2006; 2007; 2008; 2009
:
Employees at state-owned banks in China
:
Diebold, Inc. provides integrated self-service delivery and security systems, including automated teller machines, and services primarily to the financial, commercial, government, and retail markets around the world. It is headquartered and incorporated in Ohio, and maintains a class of securities traded on the New York Stock Exchange.

From 2005 to 2009, Diebold paid bribes to government officials in China. In addition, it falsified its books and records to conceal the bribes paid in China, as well as bribes paid to privately-owned entities in Ukraine and Russia.

In China, Diebold provided cash, gifts, and non-business travel to employees of state-owned Chinese banks. Diebold executives and employees attempted to disguise the payments and benefits through various means, including by making payments through third parties designated by the banks and by inaccurately recording leisure trips for bank employees as "training."

In Russia, Diebold allegedly entered into false contracts with a distributor for services the distributor was not performing. The distributor then used the money from Diebold to pay bribes to employees of Diebold's privately-owned bank customers in Russia to obtain and retain contracts with those customers. The criminal information alleges that, in doing so, Diebold knowingly falsified its books and records.
:
Books and records (Issuer), Conspiracy - Anti-Bribery
:
Compliance Monitor, Deferred-prosecution Agreement, Fine
:
Monetary penalty of $25.2 million; independent compliance monitor for three years.
:
25,200,000
:
0
:
Base Culpability Score = 5
5,000 or more employees and high-level participation = +5
Self-reporting = -5
TOTAL = 5

Base fine = $36 million
Multipliers = 1 (min)/2 (max)
Fine range= $36 million to $72 million
:
Issuer
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Gifts, Travel
:
Direct, Sales Agent/Consultant
:
1,750,000
:
China, Russia
:
Yes
:
Yes