Deutsche Bank will look to avoid U.S. charges of bribery and manipulation of precious metals markets by making a payment totaling nearly $125 million.
Almost the entire payout relates to charges against the German lender over its dealings in Saudi Arabia, Abu Dhabi, China and Italy, according to court papers, with a criminal fine making up two-thirds of the total sum, according to a court hearing in New York.
Prosecutors claim that Deutsche Bank violated the federal Foreign Corrupt Practices Act (FCPA) which prohibits firms with U.S. operations from paying bribes elsewhere.
«Criminal Scheme»
«Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others [to win and retain] «lucrative business projects,» said a statement from Acting U.S. Attorney Seth DuCharme in Brooklyn.
According to prosecutors, Deutsche Bank allegedly disguised bribes as «referral fees» paid to «decision-makers» in Saudi Arabia and millions of dollars in «consultancy fees» to an intermediary for an Abu Dhabi official.
Payments to Chinese Government Entity
The bank was also accused of making similar payments to a Chinese government entity to help establish a clean energy investment fund and a tax judge in Italy for referring wealthy clients.
With regards to precious metals market manipulation, Deutsche Bank was accused of placing fraudulent trades to lure other stop buy and sell futures contracts at price levels they normally would not engage.
