Ericsson will pay over $1 BILLION to resolve FCPA allegations that Ericsson and its subsidiary Ericsson Egypt conspired to bribe government officials, falsified their books & records, and failed to apply internal accounting controls.
#ButNothingsHappening 👇👇👇
#ButNothingsHappening 👇👇👇
Welp, they’r were right in their estimation about how much their corruption might cost them.
This agreement covers their corruption and crimes conducted in:
Djibouti
#China
Vietnam
Indonesia
Kuwait
However, I don’t see anything covering Saudi Arabia....yet.
Djibouti
#China
Vietnam
Indonesia
Kuwait
However, I don’t see anything covering Saudi Arabia....yet.
So, this corruption occurred from 2000 to 2016, and for 6 of those years, Hans Vestberg was CEO of Ericsson. Vestberg was ousted in 2016 and is now Chairman and CEO of Verizon.
en.wikipedia.org/wiki/Hans_Vest…
en.wikipedia.org/wiki/Hans_Vest…
Oh, not to mention how long this went on, as usual, before they were held accountable.
Ericsson Egypt also pleaded guilty and entered into a deferred prosecution. 
More of the usual using layers of 3rd parties to bribe foreign government officials, off book slush funds, sham contracts, false invoices, and cooked books.
Djibouti:
Ericssson’s subsidiaries paid $2.1 million in bribes to high-ranking government officials in exchange for a big $ contract.
Ericssson’s subsidiaries paid $2.1 million in bribes to high-ranking government officials in exchange for a big $ contract.
#China:
Ericsson subsidiaries paid various 3rd parties tens of $ MILLIONS that also helped to fund travel, gifts & entertainment for officials and to win CCP/state-owned customers. They cooked their books to try to hide it.
Ericsson subsidiaries paid various 3rd parties tens of $ MILLIONS that also helped to fund travel, gifts & entertainment for officials and to win CCP/state-owned customers. They cooked their books to try to hide it.
Vietnam:
Ericsson subsidiaries paid a consulting company $4.8 MILLION to create a slush fund off the books. Then they used that money to pay off 3rd parties who couldn't pass due diligence. And more book cooking.
Ericsson subsidiaries paid a consulting company $4.8 MILLION to create a slush fund off the books. Then they used that money to pay off 3rd parties who couldn't pass due diligence. And more book cooking.
Indonesia:
They paid a consulting company a whopping $45 MILLION to create even more off the books slush funds.
Ericsson knowingly hid those payments, which were made for sham contracts where work was never done.
They paid a consulting company a whopping $45 MILLION to create even more off the books slush funds.
Ericsson knowingly hid those payments, which were made for sham contracts where work was never done.
Kuwait:
They paid another consulting company $450K due to a request from a sales rep who gave Ericsson inside info about the bidding process for a $182 MILLION contract with a Kuwait state-owned telecommunications company.
They paid another consulting company $450K due to a request from a sales rep who gave Ericsson inside info about the bidding process for a $182 MILLION contract with a Kuwait state-owned telecommunications company.
Hmm, this article mentioned that Ericsson was also being investigated in their Romania business. The FT article also mentioned Saudi Arabia. Maybe those reports weren't true/provable or maybe there's more coming down the pipeline.
reuters.com/article/us-eri…
reuters.com/article/us-eri…
Ericsson had also previously fired about 50 people, so my guess is they were probably involved in all this corruption. Not sure yet if any of them have been charged.
Hmm, found some more about Romania. Ericsson claimed their former exec Thomas Lundin, stole $7 million from them.
Lundin claimed, however, that Ericsson set up slush fund to bribe Romanian officials.
Well, we know the company DID set up slush funds.
occrp.org/en/investigati…
Lundin claimed, however, that Ericsson set up slush fund to bribe Romanian officials.
Well, we know the company DID set up slush funds.
occrp.org/en/investigati…
Lundin said bribery was the only reason Ericsson was able to greatly expand their business in Romania.
Ahh, okay, I missed this in the original DOJ announcement. I was wondering if any Ericsson employees/Executives were charged.....looks like that might be coming. Their deferred prosecution appears to mean they'll turn over receipts in other ongoing investigations.
