Corruption: Daimler settles with DoJ; SEC wades in: Germany next

The US case came to light when Daimler bought Chrysler - and a former Chrysler auditor identified suspicious payments and made a report. The investigation took some time, during which Daimler exited the DaimlerChrysler group as both its quality and profits dived.

The SEC says that corrupt practices were standard operating procedure at Daimler: Cheryl J. Scarboro, Chief of the SEC's Foreign Corrupt Practices Act Unit says, "The bribery was so pervasive in Daimler's decentralised corporate structure that it extended outside of the sales organisation to internal audit, legal, and finance departments. These departments should have caught and stopped the illegal sales practices, but instead they permitted or were directly involved in the company's bribery practices."

The SEC alleges that Daimler paid at least USD56 million in improper payments over a period of more than 10 years. The payments involved more than 200 transactions in at least 22 countries. Daimler earned USD1,900 million in revenue and at least USD90 million in illegal profits through these tainted sales transactions, which involved at least 6,300 commercial vehicles and 500 passenger cars.

Daimler also paid kickbacks to Iraqi ministries in connection with direct and indirect sales of motor vehicles and spare parts under the United Nations Oil for Food Program, says the SEC.

"It is no exaggeration to describe corruption and bribe-paying at Daimler as a standard business practice," said Robert Khuzami, Director of the SEC's Division of Enforcement. "The financial and reputational costs incurred by Daimler as a result are a lesson that should be studied closely by all companies."

Daimler agreed to pay USD91.4 million in disgorgement to settle the SEC's charges and pay USD93.6 million in fines to settle charges in separate criminal proceedings announced by the U.S. Department of Justice.