HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » General Discussion (Forum) » ATM maker Diebold pays $4...
Introducing Discussionist: A new forum by the creators of DU

Tue Oct 22, 2013, 07:51 PM

ATM maker Diebold pays $48 million to settle foreign bribery case

They'll bribe but they won't sell crooked voting machines, right?


ATM maker Diebold pays $48 million to settle foreign bribery case


Diebold Inc. was accused of bribing foreign bank officials with trips to Las Vegas and other locations. (Genaro Molina / Los Angeles Times / October 22, 2013)


By Stuart Pfeifer

October 22, 2013, 9:38 a.m.

Diebold Inc., a manufacturer of ATMs, bank security systems and voting machines, has agreed to pay a $48-million penalty to settle charges it bribed officials at government-owned banks in China, Russia and Indonesia in order to win their business.

The North Canton, Ohio, company was accused by the Securities and Exchange Commission and the Justice Department of spending about $1.8 million to send the foreign bank officials on vacations to the United States and Europe and provide entertainment and gifts in violation of a federal law that prohibits U.S. companies from bribing foreign government officials.

The company was also accused of giving annual cash gifts ranging from $100 to more than $600 to foreign bank executives.

Diebold falsely recorded the bribes in its books as training expenses, the SEC alleged.

"A bribe is a bribe, whether itís a stack of cash or an all-expense-paid trip to Europe," said Scott W. Friestad, an associate director in the SECís enforcement division. "Public companies must be held accountable when they break the law to influence government officials with improper payments or gifts."

According to the SEC complaint filed in federal court in Washington, Dieboldís misconduct occurred from 2005 to 2010.

Among the destinations of the U.S. trips were the Grand Canyon, Napa Valley, Disneyland, and Universal Studios as well as Las Vegas, New York, Chicago, Washington and Hawaii, the agency said.

Officials also were treated to European vacations, the SEC charged. For example, it said, eight officials at a government-owned bank in China enjoyed a two-week trip at Dieboldís expense that included stays in Paris, Brussels, Amsterdam, Cologne, Frankfurt, Munich, Salzburg, Vienna, Klagenfurt, Venice, Florence and Rome.

The Russian bribes were funneled through a distributor using phony service contracts to hide and falsely record the payments as legitimate business expenses, according to the SEC.

In addition to the fine, Diebold agreed to appoint an independent compliance monitor to prevent future violations of the Foreign Corrupt Practices Act.

Diebold shares were up 25 cents, or 1%, to $29.97 in morning trading Tuesday.

3 replies, 359 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 3 replies Author Time Post
Reply ATM maker Diebold pays $48 million to settle foreign bribery case (Original post)
marble falls Oct 2013 OP
msongs Oct 2013 #1
JeffHead Oct 2013 #2
marble falls Oct 2013 #3

Response to marble falls (Original post)

Tue Oct 22, 2013, 08:01 PM

1. no jail time? The feds don't even pretend anymore do they? nt

Reply to this post

Back to top Alert abuse Link here Permalink


Response to marble falls (Original post)

Tue Oct 22, 2013, 08:11 PM

2. Where does all the settlement money go?

Does the SEC keep it? Does it go into the general fund? An inquiring DUer wants to know.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to JeffHead (Reply #2)

Tue Oct 22, 2013, 09:08 PM

3. Wouldn't surprise me if Diebolt doesn't get to write it all off their taxes.

Reply to this post

Back to top Alert abuse Link here Permalink

Reply to this thread