On Tuesday, October 22, 2013, the Department of Justice (DOJ) announced that Diebold Inc. (Diebold), a provider of integrated self-service delivery and security systems, has agreed to pay $25.2 million to settle criminal charges that it violated the Foreign Corrupt Practices Act (FCPA) by bribing Chinese and Indonesian officials and by falsifying records in Russia in order to obtain contracts to provide ATMs to banks in those countries.
DOJ alleges that Diebold disguised the bribery payments and gifts through various means, such as routing the payments through third parties designated by the banks and recording leisure trips for bank employees as "training." In Russia, Diebold entered into false contracts with a distributor for services that the distributor was not performing. The distributor then used money received from Diebold to pay bribes to employees of Diebold's privately-owned bank customers in Russia in order to obtain and retain ATM-related contracts.
In addition to the criminal penalty, Diebold agreement to implement internal controls, cooperate fully with the DOJ, and retain a compliance monitor for a minimum of 18 months. DOJ agreed to defer prosecution for three years, and if Diebold abides by the terms of the deferred prosecution agreement, the DOJ will dismiss the criminal information when the agreement's term expires.
In a related matter, Diebold reached a settlement with the Securities and Exchange Commission (SEC) to pay almost $23 million in disgorgement and prejudgment interest.