Siemens execs convicted of $49M hospital fraud

Two former Siemens executives pled guilty this week rigging a $49 million contract to provide equipment to a Cook County (Illinois) hospital. To engineer the fraud the two execs, Daniel P. Desmond and Ellen Roth, had claimed they were following rules for fostering a minority participation in their contract with the county's John H. Stroger hospital. In their bid, two claimed they had joint-ventured with a minority partner which would share 30 percent of profits from the deal. In reality, the two had set up a behind-the-scenes payoff under which the alleged minority partner would get a flat $500,000 fee for its participation. Siemens has agreed to pay a $1 million fine and $1.5 million in restitution for its role in the fraud.

To find out more about the case:
- read this Associated Press article

Related Article:
Siemens corruption probe widens: $556M. Report