By Aruna Viswanatha and Nate Raymond
Jan 15 (Reuters) - A former compliance officer for Siemens
AG in China sued the company on Tuesday, accusing it
of firing him after he tried to expose a kickback scheme
involving medical equipment sales to hospitals there.
The allegations come after Siemens resolved charges in 2008
that it paid bribes in exchange for business around the world.
The lawsuit accuses the company of violating the terms of that
settlement.
Meng-Lin Liu said he had uncovered "incontrovertible
evidence" after he joined the company in 2008 that Siemens was
engaged in a bribery scheme and submitting inflated bids on
medical diagnostic and scanning equipment sales to public
hospitals in China.
The company then sold the equipment at much lower prices to
intermediaries picked by the hospital's procurement officials,
Liu said in a lawsuit filed in U.S. federal court in Manhattan.
Such a scheme could violate the U.S. Foreign Corrupt
Practices Act, which bars U.S.-listed firms from paying bribes
to officials of foreign governments, including officials at
state-owned hospitals.
After he provided evidence of this scheme to managers, Liu
said, he was removed from his position, told not to report to
work and later fired.
Liu, listed as a resident of Taiwan in the lawsuit, is
seeking damages related to lost pay and litigation costs. The
amounts are not specified but he asks for twice his back pay and
damages to be determined at the trial.
Siemens agreed to pay $1.6 billion in 2008 to resolve U.S.
and German charges that it violated foreign anti-bribery laws
through its business in countries that ranged from Argentina and
Venezuela to Bangladesh.
As part of that settlement, the company also agreed to
implement and maintain a robust program to comply with the FCPA
and retain an independent consultant to monitor that program and
report on its development to the U.S. Justice Department.
Liu said the evidence he uncovered showed that the company
intentionally evaded the due diligence policies put in place to
comply with its 2008 plea agreement.
The lawsuit also includes allegations involving the
company's sales in North Korea. Liu brought his suit under the
2010 Dodd-Frank Wall Street reform law, which created incentives
and protections for whistleblowers who report securities law
violations.
Siemens representatives did not immediately respond to an
emailed request for comment.
The case is Meng-Lin Liu v. Siemens A.G., U.S. District
Court, Southern District of New York, No. 13-0317.
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