Deutsche Bank agreed to pay more than $130 million to settle the U.S. government’s allegations that it engaged in corrupt practices and fraudulent commodities trading practices to obtain a lucrative business deal in Saudi Arabia.
On Friday, the U.S. Department of Justice (DOJ) filed a criminal information against Deutsche Bank in the Easter District Court of New York. The charges included one count of conspiracy to violate the books and records and internal accounting control provisions of the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit wire fraud.
The German bank decided to resolve the matter by entering into a three-year DPA with the DOJ Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS) and with the U.S. Attorney’s Office for the Eastern District of New York.
Under the DPA, Deutsche bank will pay $85,186,206 in criminal penalties, $681,480 in criminal disgorgement, $1,223,738 in victim compensation payments, and $43,329,622 to the U.S. Securities & Exchange Commission (SEC) as part of the coordinated resolution.
Details of the charges against Deutsche Bank
According to court documents, the German bank through its agents and employees including managing directors and senior regional executives allegedly “knowingly and willfully” conspired to pay bribes to a foreign official, a decision maker who was being represented by a business development consultant (BDC) in Saudi Arabia and Abu Dhabi.