Diebold to pay $48 million to settle allegations of foreign bribes to Chinese banks and Russian businesses

Diebold, a NYSE traded maker of ATM’s and bank security systems will pay $48 million in penalties, disgorgement, and interest for its gifts, entertainment and non-business travel to Chinese banks, considered government instrumentalities.

The moneys, called “trimmings” by the company were considered bribes and in violation of the Foreign Corrupt Practices Act.

In addition, the allegations stated that Diebold entered into false contracts with a distributor who used the money to obtain ATM contracts.

The Department of Justice is increasing its interest in foreign bribes.