Agents from the criminal investigations arm of the U.S. Department of Defense (DoD) have raided the Pennsylvania offices of Siemens Healthcare, according to federal officials. A Siemens representative said the search was related to the investigation of a contract the company has with the DoD.
Investigators from the Defense Criminal Investigative Service (DCIS) arrived at the company's Malvern offices on the morning of April 22 to execute a search warrant, according to Ed Bradley, special agent in charge with the agency's northeast field office in Philadelphia, in comments to AuntMinnie.com.
Siemens Healthcare director of public relations Lance Longwell confirmed that DCIS investigators conducted a "limited search" of one floor of the Malvern building. Siemens asked employees who work near the area subject to the search to leave for the remainder of the day and to return tomorrow for a regular workday, Longwell said.
"Siemens has fully cooperated with the investigation and will continue to do so," he added.
The DCIS is the criminal investigative arm of the Department of Defense's Office of the Inspector General, Bradley said. The unit has authority to investigate issues related to defense contracts, weapons programs, and any other funds spent by the DoD.
Local news coverage of the raid cited unnamed sources as stating that investigators "are seeking documents and records involving several contracts between the military and the company," according WPVI-TV television in Philadelphia. The investigation appears to be focusing on medical contracts, the report said.
Siemens several years ago ran afoul of government authorities for issues related to corruption in the procurement of medical equipment contracts. In 2007, German investigators discovered a secret fund through which bribes were paid to obtain contracts internationally.
The Healthcare group acknowledged the existence of a fund worth approximately $2.1 billion and agreed to pay a fine of $317 million. The disclosures may have led to the departures of Klaus Kleinfeld, CEO of Siemens AG, as well as Erich Reinhardt, CEO of Siemens Healthcare. Neither Kleinfeld nor Reinhardt were ever linked personally to the fund.
In 2007, Siemens agreed to a plea deal that included a $2.5 million fine related to charges of procurement fraud in trying to obtain a radiology equipment contract at an Illinois hospital that required minority participation. Federal prosecutors charged Siemens, two Siemens employees, and a joint-venture business partner with setting up a "sham" joint venture in order to win a $49 million contract at Stroger Hospital in Cook County, IL.
Related Reading
Siemens wins U.K. install, April 16, 2009
Siemens takes Mammomat order, April 7, 2009
Siemens, Harris partner on PACS, April 6, 2009
Siemens readies Acuson S2000 enhancements, April 2, 2009
Siemens to unveil new syngo Dynamics release, March 30, 2009
Copyright © 2009 AuntMinnie.com
