May 25, 2007—Siemens Medical Solutions, Malvern, Pa, was ordered to pay a fine and restitution totaling more than $2.5 million for misleading hospital officials in an attempt to land an Illinois contract.
When bidding on a $49 million medical equipment contract with Stroger Hospital, Chicago, Siemens claimed to have entered into a partnership with minority-owned Faustech Industries. Siemens won the contract, although without the minority partner, the company would not have been eligible to bid.
In October 2000, GE Healthcare, Waukesha, Wis, sued Cook County, where Stroger is located, claiming the contract was awarded against the terms of the bidding process. Siemens later admitted to falsifying the minority partnership, paying Faustech $500,000 as a "sales commission."
Siemens will pay $1,516,683 in restitution to Cook County on top of a fine of $1 million. The company agreed to the amount as part of a bargain with prosecutors under which it would not be charged for mail and wire fraud.
—Cat Vasko
