Daimler`s German and Russian units have each agreed to plead guilty to two counts of violating U.S. anti-bribery laws. The Chinese subsidiary will also be subject to a two-year agreement on deferred prosecutions. Daimler AG has reached an agreement on deferred prosecution and has agreed to the filing of criminal information that it accuses of conspiracy to violate the accounting and accounting rules of the FCPA and a charge of violating these provisions. Daimler AG`s Chinese subsidiary, DaimlerChrysler China Ltd. (DCCL), now known as Daimler North East Asia Ltd., also reached an agreement on deferred prosecution and agreed to the filing of a criminal investigation it opened for a conspiracy to violate FCPA anti-corruption rules and a charge of violating those provisions. In total, Daimler AG and its subsidiaries pay $93.6 million in fines and penalties. On April 1, 2010, Daimler AG (“Daimler” or “Unternehmen”), a Germany-based automaker, declared: willing to pay more than $180 million in fines to settle double investigations with the Department of Justice (“DOJ”) and the Securities and Exchange Commission (SEC) (together “the government”) regarding violations of the Foreign Corrupt Practices Act (FCPA) and the Securities Exchange Act of 1934 (Exchange Act). In addition, three Daimler subsidiaries have resolved allegations related to corruption issues. Under the terms of the settlement agreements, Daimler and its subsidiaries will pay, as part of the DOJ investigation, $93.6 million in penalties and criminal penalties and $91.4 million in profit deductions to settle the SEC`s civil claim.
With respect to the DOJ`s investigation and allegations, the company`s Russian and German subsidiaries, Mercedes-Benz Russia SAO, formerly known as DaimlerChrysler Automotive Russia SAO, and Daimler Export and Trade Finance GmbH, pleaded guilty to violations of fcpa`s anti-corruption provisions. Daimler has agreed to enter into a deferred prosecution agreement to address allegations of violations of the FCPA`s books and records provisions. Daimler North East Asia Ltd., formerly known as DaimlerChrysler China Ltd., has also entered into a deferred prosecution agreement with the DOJ to respond to charges of violating the FCPA`s anti-corruption provisions. These two deferred enforcement agreements are conditional on maintaining a comprehensive compliance program and no further fcpa violations. Although the cases against Daimler and its subsidiary in Northeast Asia will be dismissed within two years of entering into the terms of the deferred crackdown agreements, Daimler and its three subsidiaries must retain for a period of three years an independent monitor to monitor FCPA compliance and send reports to the company and the DOJ. These investigations ended with the fact that in 2010, Daimler agreed to pay $185 million and enter into a deferred prosecution agreement with the Justice Department, which provided for the shutdown of an independent monitor to monitor the company`s progress in putting in place strict internal controls. The Justice Department last year extended the period of the deferred prosecution agreement, a measure the agency would not dwell on, but Daimler said at the time that the notion of transaction should be “closer to the monitor review period.” The monitor verification period and the deferred prosecution agreement period have recently been completed. . . .