Anti-Bribery and Anti-Corruption

Telcos Pay US$95m to SEC to Settle Bribery Case

Fierce Wireless reports that Deutsche Telekom and its subsidiary Magyar Telekom “have agreed to pay the U.S. Securities Exchange Commission [SEC] [US]$95 million to settle allegations of bribing government officials in Montenegro and Macedonia”. Reportedly, according to SEC enforcement division Foreign Corrupt Practices Act unit chief Kara Novaco Brockmeyer, “Magyar Telekom’s senior executives used sham contracts to funnel millions of dollars in corrupt payments to foreign officials who could help them keep competitors out and win business”.
Fierce Wireless: Deutsche Telekom pays $95M to settle bribery case (2 January 2012)

Related media items:
SEC’s media release (29 December 2011)
DoJ’s media release (29 December 2011)
(Source: Fierce Wireless; SEC; DoJ)

Former Siemens Executives Charged with Bribery

Three years after the company agreed to pay the U.S. government $1.6 billion to settle bribery charges, six former Siemens employees have been charged by U.S. prosecutors with paying $60 million in bribes to Argentine officials. One of the employees charged is Uriel Sharef, who was a member of the company’s board of directors. According to prosecutors, this is the first time a company the size of Siemens has had a board member charged under the Foreign Corrupt Practices Act (FCPA). The defendants in the case could face up to 20 years in prison on charges of money laundering and up to five years on the charges of bribery.
LA Times: Prosecutors charge former Siemens employees in bribery case (13 December 2011)
(Source: LA Times)

Former Chairman and CEO of Anglo Irish Bank Arrested
Europe, Middle East and Africa

The former Chairman and CEO of Anglo Irish Bank, Sean FitzPatrick, has again been arrested in connection with alleged fraud at Anglo Irish Bank while he was overseeing the company. FitzPatrick had previously been arrested in 2010 after a related investigation. At that time, FitzPatrick was questioned by authorities regarding the misuse of customer deposits. FitzPatrick resigned from the bank after admitting to the concealment of shareholder loans that totaled $112 million. The former financial director at the bank, Willie McAteer, has also been questioned by the police.
New York Times: Former Chairman of Anglo Irish Bank Arrested (9 December 2011)
(Source: New York Times)

Medical Device Leader Settles for US$23.5 Million in Kickback Case

Medtronic has reached a settlement with the U.S. Department of Justice (DOJ) regarding accusations that the company gave kickbacks to doctors in exchange for the use of Medtronic’s pacemakers and defibrillators. According to the DOJ, Medtronic used postmarked studies and device registries to funnel the illegal kickbacks to the doctors. These methods resulted in false claims being submitted to Medicare and Medicaid. The company has agreed to pay $23.5 million in fines but would not admit to any wrongdoing as part of the agreement. The DOJ has also recently settled with several Medtronic competitors, including Boston Scientific and St. Jude Medical, regarding similar charges.
New York Times: Medtronic Agrees to $23.5 Million in Kickback Case (12 December 2011)
(Source: New York Times)

DoJ’s Media Releases

The US Department of Justice (DoJ) has made available the following media releases:

(Source: DoJ)