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SEC team starts Siemens probe
Allan Hall6 Aug 2008
Sleuths from America's Securities and Exchange Commission are flying to Germany to begin their own probe into the billion-pound slush-funds operated by engineering giant Siemens.
Hopes that court action against guilty managers in Germany might keep the SEC at bay have failed. SEC investigators are expected in Munich soon to begin the groundwork for US lawsuits.
They have told Siemens they want unfettered access to witnesses and the books.
Because Siemens' shares trade in America, the financial watchdog has the power to drag the firm before the courts for legal action that could last years and cost hundreds of millions of pounds. Siemens has refused to comment.
The company landed itself in the largest corporate fraud case in German history when slush funds used to bribe for business contracts abroad worth £1 billion were found.
One manager has been given a suspended jail sentence and the current management plans to bring lawsuits against former board members.
