The Quotes are Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.

Management & Strategy



Directors in Telecoms company, Ericsson accused of financial swindle

Monday, 20 May 2013
Swedish telecoms company,  Ericsson is accusing three former executives of embezzling over Skr200 million, money set into an account to pay foreign agents. It turned out that the money ended up in the private accounts managed by these three managers.
The link to the money has to do with a bank accounts in Switzerland were secret payments to their agents around the world was established,  Swedish business daily Dagens Industri reports on Monday.

Ericsson points out that former top manager, Liss-Olof Nenzell led the above characterisation and he alone had played with around Skr250 million. Even the former head, Thomas Lundin and a third manager at Ericsson subsidiary in Romania have been singled out as involved in the disappearance of that haul of money.

Dagens Industri claims that it has looked into a court documents submitted to the Stockholm District Court, Court of Appeal and Kantonsgericht Zug, Switzerland, and an arbitration in Stockholm.

Liss-Olof Nenzell is said to have in 1998 on behalf of the executive leadership team build a system of secret payments to agents through accounts in Swiss banks.
Then the telecoms giant stuffed it with money and Liss-Olof Nenzell handled the huge sums, writes the paper.

According to Ericsson, however, some of the money that would have gone to the agents, equivalent to Skr150 million was paid to offshore companies and number of accounts linked to the three accused managers.
Ericsson claims that some Skr23 million of company funds was transferred to offshore accounts, to companies and three accounts without the knowledge of the company, Ericsson lawyers claim.
The money was then passed back on to private accounts in Swiss banks, where the three directors were the account holder or have powers to manage the accounts via an attorney.

It has taken Ericsson almost ten years to finally track down the money. But only USD950,000 has come back and this came from the third boss who voluntarily paid his share and left his post, writes Dagens Industri.
Thomas Lundin was sentenced in April 2012 to pay back nearly Skr50 million plus interest in an arbitration. Lundin, however, maintains that the money was used for cash bribes.
by Team

Print Friendly and PDF