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Diebold settles bribery allegation case for $48M

October 25, 2013

This week, Diebold Inc. reached a settlement with the U.S. Securities and Exchange Commission and the U.S. Justice Department over a 3-year-old case alleging bribery of government bank officials in China, Russia and Indonesia. The company will pay a $48 million fine as part of the settlement.

The case involved charges that, from 2005 to 2010, the company spent $1.8 million on vacations, entertainment, cash payments and gifts for foreign bank officials in violation of the Foreign Corrupt Practices Act, a Los Angeles Times report said. The FCPA forbids bribery of foreign officials by American companies.

According to the SEC, the expenses were falsely described as training expenses in the company's books. Russian bribes were paid through a distributor disguised as service contracts and were falsely recorded as legitimate business expenses, the Times article said.

In addition to payment of the fine, Diebold has agreed to appoint an independent compliance monitor in order to ensure the company's adherence to FCPA requirements.

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