Siemens Reportedly to Pay Record $800 Milllion FCPA Settlement
Bloomberg has reported that Siemens AG has agreed to pay $800 million to settle allegations that it violated the U.S. Foreign Corrupt Practices Act. If finalized, this will be the largest FCPA penalty ever, dwarfing the $44.1 million penalty imposed on Baker Hughes in April 2007.
The article states that prosecutors are proposing that the company pay a criminal penalty of $450 million. In addition, under an agreement with the Securities and Exchange Commission, Siemens will also be required to disgorge $350 million in profits and agree to an outside compliance monitor. The settlement agreement is likely to be finalized on Monday during a hearing in federal court in Washington, DC.
During the past few years, public prosecutors and other government authorities in jurisdictions around the world have been conducting investigations of Siemens AG and its consolidated subsidiaries and certain of its current and former employees regarding allegations of public corruption. The SEC and the DOJ have also been investigating possible violations of U.S. law by Siemens in connection with the Oil-for-Food Program.