Siemens AG FCPA guilty pleas and SEC settlement (2008)
- Resolution type
- Guilty pleas by Siemens AG and three subsidiaries (DOJ), and a consent judgment (SEC) 1,3
- Court
- U.S. District Court for the District of Columbia. Criminal pleas before Judge Richard J. Leon 1. SEC civil action 08 CV 02167 3
- Total
- More than US$1.6 billion in fines, penalties and disgorgement, including US$800 million to US authorities, per DOJ 1
- DOJ fines
- US$448.5 million (Siemens AG) and US$500,000 each for Siemens Argentina, Siemens Venezuela and Siemens Bangladesh, US$450 million combined 1
- Statutes
- FCPA internal controls and books and records provisions (DOJ). Exchange Act sections 30A, 13(b)(2)(A) and 13(b)(2)(B) (SEC) 1,2
The criminal pleas
DOJ announced on 15 December 2008 that Siemens AG and three subsidiaries had pleaded guilty before U.S. District Judge Richard J. Leon in the District of Columbia 1. The pleas differed by entity 1.
Siemens AG's plea was to the FCPA internal controls and books and records provisions, not the anti-bribery provisions 1. Two subsidiaries pleaded to conspiracy charges that included the anti-bribery provisions 1.
| Defendant | Charge | Criminal fine |
|---|---|---|
| Siemens AG 1 | Two-count information: violations of the FCPA internal controls and books and records provisions 1 | US$448.5 million 1 |
| Siemens Argentina 1 | One count: conspiracy to violate the FCPA books and records provisions 1 | US$500,000 1 |
| Siemens Venezuela 1 | One count: conspiracy to violate the FCPA anti-bribery and books and records provisions 1 | US$500,000 1 |
| Siemens Bangladesh 1 | One count: conspiracy to violate the FCPA anti-bribery and books and records provisions 1 | US$500,000 1 |
What the defendants admitted
DOJ said court documents describe "systematic efforts to falsify its corporate books and records" by Siemens AG, beginning in the mid-1990s 1. DOJ said Siemens Venezuela "admitted it made and caused to be made corrupt payments of at least $18,782,965" 1. DOJ said Siemens Bangladesh "admitted that from May 2001 to August 2006, it caused corrupt payments of at least $5,319,839" 1.
Acting Assistant Attorney General Matthew Friedrich said "bribery was nothing less than standard operating procedure for Siemens" 1.
The SEC settlement
The SEC filed its complaint in the District of Columbia on 12 December 2008, and the court entered final judgment on 15 December 2008 3. The SEC alleged violations of the anti-bribery provision in section 30A of the Securities Exchange Act of 1934 and of the books and records and internal controls provisions in sections 13(b)(2)(A) and 13(b)(2)(B) 2,3.
The SEC said "Without admitting or denying the Commission's allegations, Siemens has consented" to the judgment 3. The judgment permanently enjoins Siemens from future violations of those sections and orders US$350 million in disgorgement 3.
The SEC alleged that Siemens made at least 4,283 payments totalling about US$1.4 billion to bribe government officials 2. It alleged about 1,185 further payments to third parties totalling about US$391 million 2. The SEC said Siemens earned more than US$1.1 billion in profits on the transactions it described 2.
The German cases and the total
DOJ said Siemens would pay €395 million, about US$569 million, to the Munich Public Prosecutor's Office over operating groups other than Telecommunications 1. That followed a 2007 settlement over the Telecommunications group of €201 million 1.
The agencies convert the 2007 figure differently. DOJ gives about US$287 million 1. The SEC gives about US$285 million 3. DOJ put the total across the US and Munich cases at more than US$1.6 billion, including US$800 million to US authorities 1. The SEC release put the combined sanctions at US$1.6 billion 2.
Status
Siemens AG agreed to retain an independent compliance monitor for four years to oversee its compliance programme and report to the company and DOJ 1. The SEC judgment includes the same four-year monitor undertaking 3. This page has not confirmed the end of the monitorship from a DOJ or SEC document, so it does not report it.
Common questions
Did Siemens plead guilty to bribery?
Siemens AG pleaded guilty to FCPA internal controls and books and records violations 1. Siemens Venezuela and Siemens Bangladesh pleaded guilty to conspiracies that included the anti-bribery provisions 1.
Did Siemens admit the SEC allegations?
No. The SEC said Siemens consented to the judgment "Without admitting or denying the Commission's allegations" 3.
How much did Siemens pay?
US$450 million in US criminal fines and US$350 million in SEC disgorgement, plus the Munich fines, more than US$1.6 billion in total per DOJ 1.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email hello@settlementsexplained.org with the official link.
Sources
- U.S. Department of Justice: Siemens AG and Three Subsidiaries Plead Guilty to Foreign Corrupt Practices Act Violations and Agree to Pay $450 Million in Combined Criminal Fines (15 December 2008)
- U.S. Securities and Exchange Commission: SEC Charges Siemens AG for Engaging in Worldwide Bribery, press release 2008-294 (15 December 2008)
- U.S. Securities and Exchange Commission: Litigation Release No. 20829, Siemens Aktiengesellschaft (15 December 2008)
Related
- FCPA resolutions explained
How U.S. Foreign Corrupt Practices Act cases end: declinations, NPAs, DPAs, guilty pleas and SEC actions, with the statute, penalties and DOJ policy.
- SEC settlements: neither admit nor deny
What an SEC settlement without admissions means, the 1972 no-deny policy in 17 CFR 202.5(e), and its rescission by the SEC on 18 May 2026.
- Plea agreements and settlements compared
The difference between a guilty plea, a deferred prosecution agreement and a civil settlement in U.S. cases, with Rule 11 and Justice Manual rules.
- ABB FCPA resolution over Eskom bribery (2022)
ABB entered a three-year DPA with DOJ and settled SEC charges in December 2022 over bribes to an Eskom official. Amounts, admissions and terms.