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Siemens Agrees to Pay $10 Million to Settle New York Fraud Case

Jan. 15 (Bloomberg) -- A Siemens AG unit agreed to pay $10 million to settle allegations made by New York prosecutors that the company lied about its qualifications to win more than $200 million in infrastructure contracts.

Schlesinger-Siemens Electrical violated New York state law by filing false documents with two city departments, the New York District Attorney’s Office said in a statement on its website yesterday. Siemens takes responsibility for misconduct committed by its former business partner Schlesinger Electrical Contractors Inc., Munich, Germany-based Siemens said in an e-mailed statement.

The business “unfairly put itself ahead of more qualified applicants,” New York District Attorney Cyrus Vance Jr., said in the statement. “Although it safely and successfully completed the majority of the work it was hired to do, there is no room for dishonesty in business, particularly when taxpayers are footing the bill.”

New York’s Department of Environmental Protection awarded five contracts to Schlesinger-Siemens Electrical with a total value of $234.8 million between Aug. 31, 2005 and Jan. 19, 2007, the district attorney said.

To contact the reporter on this story: Sheenagh Matthews in Frankfurt at smatthews6@bloomberg.net

To contact the editor responsible for this story: Simon Thiel at sthiel1@bloomberg.net

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