US V. Siemens Case

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The plaintiff in the case US v. Siemens Case is the United States of America government. The defendant in the case is Simiens Aktiengesellschaf.

There are potential penalties and sanctions that can emanate from the various violations in this case. At first violation of US code 78m (b) 2(A) and (b) 5 attracts a hefty fine. The fine applicable does not exceed 25 million dollars. Alternatively, the fine applied can be double the amount of pecuniary gain that is obtained from the violation or it can be twice the amount that other people suffered as a result of the offence. The company can also be slapped with a probation that could last for a maximum of five years. The probation must be followed by a mandatory assessment of four hundred dollars. Another major penalty that can arise from the same is that the emp0loyees risk heavy fines of not more than $100000 or an imprisonment of five years.

Summary of facts

Siemens is one of the largest engineering firms in German. The company registered in the New York stock exchange and thus it was subject to US security laws. In 2006 raids were conducted on suspicions that the company might have involved itself in corrupt activities. After a series of investigations, Debevoise revealed evidence that proved that Siemens have been engaging in corruption for a number of years. Furthermore, the company had failed to implement internal controls effectively. The company intentionally engaged in falsification of books of accounts and they did not instill a strong internal control system as expected by the law. The evidence revealed how the lack of internal control system made it possible for the company to engage in corrupt dealings without getting noticed. The company had also engaged in various corrupt deals for food and oil deal in Iraq. There was also evidence of corruption and improper recording of payments to the US by the Siemens subsidiaries.

Siemens nationality can be traced in Germany. Siemens is a Germany company that has been engaging in engineering and production of telecommunication equipments and other appliances. The company got engaged with the US after it registered with the New York stock exchange as an issuer. The act of registering with the New York stock exchange confirmed that the company was subject to all the US laws that relate to the securities exchange.

In one way or the other Siemens allowed its employees to make illegal payments and engage in corruption? In order to avoid detection, the company installed a few measures. At first, they engaged the employees in the names of consultants, and they recorded the illegal payments as consultancy fees. They also ensured that the payments were made through falsified invoices that were hard to detect. The company also drafted sham business agreements so as to justify the payments.

The company also engaged in a number of ways so as to conceal the fact that it was bribing officials. At first, they engaged in business agreements that were not meant for any purpose. This happened immediately after Siemens won a contract. They also tried to obscure audit on the various consultation fees that had been made, and they also limited audit in such areas. They also engaged the services of intermediaries who would pay the officials on behalf of Siemens.

The US government charged Siemens with two counts of offences.

The offences that Siemens committed was in relation to Title 15, United States Code; Sections 78m(b)(2)(B), 78m(b)(5), and 78ffa. The other sections that were violated were Title 15, United States Code, Sections 78m(b)(2)(A), 78m(b)(5), and 78ffa.

“08”, “RJL” and the “cr represent the court docket number for the above case.

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