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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Foreign Corrupt Practices Act Criminal Investigation

Daimler AG and three of its subsidiaries resolved criminal charges related to a Foreign Corrupt Practices Act (FCPA) investigation into the company’s worldwide sales practices. According to the U.S. Department of Justice, Daimler and its subsidiaries made hundreds of improper payments worth tens of millions of dollars to foreign officials in at least 22 countries in order to secure contracts with government customers for the purchase of Daimler vehicles. Daimler’s Russian subsidiary DaimlerChrysler Automotive Russia SAO (DCAR), now known as Mercedes-Benz Russia SAO, and its German subsidiary, Export and Trade Finance GmbH (ETF), each pleaded guilty to conspiracy to violate the anti-bribery provisions of the FCPA. DCAR and ETF agreed to pay criminal fines of $27.3 million and $29.1 million, respectively. Daimler’s Chinese subsidiary DaimlerChrysler China Ltd. (DCCL), now known as Daimler North East Asia Ltd., entered into a deferred prosecution agreement with regard to charges of conspiracy to violate the anti-bribery provisions of the FCPA. Daimler entered into a deferred prosecution agreement with regard to charges of conspiracy to violate the books and records provisions of the FCPA. Daimler also admitted that it agreed to pay kickbacks to the former Iraqi government in connection with contracts to sell vehicles to Iraq under the United Nations Oil for Food program. In total, Daimler and its subsidiaries agreed to pay $93.6 million in criminal fines and penalties. See related Daimler AG instance, “Foreign Corrupt Practices Act SEC Investigation.”

Misconduct Type
Ethics
Enforcement Agency
Justice
Contracting Party
None
Court Type
Criminal
Disposition
Deferred Prosecution Agreement
Date of Settlement Announcement
4/1/2010
Contractors Involved Penalty
Total
Daimler AG $93,600,000

See also:

Federal Contractor Misconduct Database