Diebold Inc. Resolves Civil and Criminal FCPA Charges Related to Bribery in China, Indonesia and Russia for $48 Million

Lavish vacations for foreign officials across the globe in return for business form the basis for many of the government’s allegations against Diebold, Inc., an Ohio-based maker of ATM machines and security systems.  Diebold settled with both the SEC and DOJ on October 22, 2013 and agreed to pay more than $48 million in fines, disgorgement and prejudgment interest for the alleged violations.  The government alleged that $3 million in illicit payments were made on behalf of Diebold in China, Russia and Indonesia from 2005-2010.  The DOJ charged the case as conspiracy to violate the anti-bribery provisions of the FCPA and a violation of the books and records provisions.  The company agreed to retain a compliance monitor for 18 months, often a costly and unwelcome proposition.  See “How to Find a Business-Minded Compliance Monitor and Minimize Reporting Requirements When Negotiating an FCPA Settlement (Part One of Three),” The FCPA Report, Vol. 2, No. 4 (Feb. 20, 2013); Part Two of Three, Vol. 2, No. 5 (Mar. 6, 2013); Part Three of Three, Vol. 2, No. 6 (Mar. 20, 2013)

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