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Will There Be Any Daimler-Related Prosecutions?

Bribery schemes are often facilitated, aided and abetted, and enabled by third parties and with increasing frequency the DOJ targets such enablers.  In November 2009, Assistant Attorney General Lanny Breuer stated as follows.  “The use of intermediaries to pay bribes will not escape prosecution under the FCPA.  The Department will continue to hold accountable all the players in an FCPA scheme – from the companies and their executives who hatch the scheme, to the consultant they retain to carry it out.“  Recent FCPA enforcement actions that have targeted such enablers include:  Jeffrey Tesler and Wojciech Chodan (in connection with the Bonny Island, Nigeria cases); the Aquilars (in connection with the Lindsey Manufacturing enforcement action); Ousama Naaman (in connection with the Innospec enforcement action); and Paul Novak (in connection with the Willsbro enforcement action).

The March 2010 FCPA enforcement action against Daimler and its related entities (see here for the prior post) contained unusually detailed allegations concerning the conduct of various enablers in Daimler’s bribery scheme.  Thus, back in March 2010, I observed as follows.  “The alleged improper payments involved dozens and dozens of third parties, including several located in the U.S., which were allegedly utilized by Daimler and its affiliates to bribe foreign officials. Given Daimler’s use of numerous U.S. based entities, it will be interesting to see if any of these U.S. entities and/or entity employees will be prosecuted for their role in the respective bribery schemes.”

A year and a half has passed, there have been no related prosecutions, and it is appropriate to again ask the question – will any U.S. enablers of Daimler’s bribery scheme be held accountable?

Based on the DOJ’s allegations in the Daimler enforcement action, the following entities would seem to be the most logical candidates.

M.F. Mechanical & Electrical, Inc. (Daimler payment to the entity for the benefit of Chinese “foreign officials” – para 50 of Daimler AG information);

Shores International, a Texas corporation (Daimler payment to the entity for the benefit of the wife of a Chinese government official – para 51 of Daimler AG information);

Lily Energy Services, Inc., a Texas corporation (Daimler payment to the entity for the benefit of Chinese “foreign officials” – para 52 of Daimler AG information);

King Jack Inc., a California corporation (Daimler payment to the entity for the benefit of Chinese “foreign officials” –  para 53 of Daimler AG information);

Oldenburgh Financial Corporation, incorporated in Delaware, and United Petrol Group LLP, incorporated in Oregon (Daimler payments to the entities for the benefit of Latvian government officials –  para 106 of Daimler AG information);

Biotop Group, Inc., a Delaware corporation, and Marketing Research and Consultants LLC, a Wyoming corporation (Daimler payments to the entities for the benefit of Croatian government officials – para 123-128 of Daimler AG information)

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