Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 1 of 5

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1 Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 1 of 5 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA UNITED STATES OF AMERICA v. Crim. No (RJL DAIMLERCHRYSLER CHINA LTD., Defendant. GOVERNMENT'S MOTION TO DISMISS CRIMINAL INFORMATION Pursuant to Rule 48(a of the Federal Rules of Criminal Procedure, the United States of America, by and through its undersigned counsel, hereby moves to dismiss the criminal information filed in the above-captioned case against defendant DaimlerChrysler China Ltd., now known as Daimler North East Asia Ltd. ("DCCL", which is a wholly owned subsidiary of Daimler AG ("Daimler". In support of this motion, the government states as follows: 1. On or about March 22, 2010, the United States filed a criminal information charging DCCL, in Count One, with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA", Title 15, United States Code, Section 78dd-3, in violation of Title 18, United States Code, Section 371; and in Count Two, with violating the anti-bribery provisions of the FCPA, in violation of Title 15, United States Code, Section 78dd-3 and Title 18, United States Code, Section 2. Dkt. Entry No On or about March 24, 2010, the United States filed a deferred prosecution agreement ("DPA" entered into by the United States and DCCL. Dkt. Entry No. 3 & Attachment 1. The DPA required, among other things, that DCCL acknowledge responsibility for the actions of its officers, employees and agents in making at least 4,173,944 in improper

2 Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 2 of 5 payments in the form of "commissions," delegation travel and gifts for the benefit of Chinese government officials or their designees, in connection with over 112,357,719 in sales of commercial vehicles and Unimogs to Chinese government customers, which sales were made directly from Daimler's commercial vehicles and Unimog divisions in Germany through various intermediaries with the assistance of DCCL employees in the commercial vehicles division. DPA f 2 & Attachment A. 3. As part of the DPA, DCCL also agreed, among other things, to continue to cooperate with the United States. DPA f 5. In light of Daimler's agreement to pay a $93,600,000 monetary penalty pursuant to a separate deferred prosecution agreement between Daimler and the United States (see U.S. v. Daimler AG. No. 1:10-CR (RJL, which penalty amount was based in part on DCCL's criminal conduct, the parties agreed that DCCL would not pay any separate monetary penalty as part of the DPA. DPA f Daimler paid the agreed-upon penalty on or about April 1, 2010, with offsetting credit for monetary penalties paid by two other wholly owned subsidiaries of Daimler - namely, DaimlerChrysler Automotive Russia SAO ("DCAR", now known as Mercedes-Benz Russia SAO (see U.S. v. DaimlerChrysler Automotive Russia SAO. No. 1:10-CR (RJL, and Daimler Export and Trade Finance GmbH ("ETF" (see U.S. v. Daimler Export and Trade Finance GmbH. No. 1:10-CR (RJL - in connection with their guilty pleas. 5. Pursuant to the DPA, DCCL acknowledged and accepted that it would be monitored by a corporate compliance monitor (the "Monitor" pursuant to the terms of Daimler's deferred prosecution agreement with the United States. DPA f The term of the DPA originally ran from April 1, the date of the entry of guilty pleas by DCAR and ETF - through April 8, 2012 (two years and seven days from the 2

3 Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 3 of 5 starting date of the term of the DPA. DPA f 3. However, by Amendment to the DPA filed on April 4, 2012, the term of the DPA was extended to December 31, Dkt. Entry No. 10, As described in the motion to dismiss filed contemporaneously herewith in U.S. v. Daimler AG, No. l:10-cr (RJL, the Monitor conducted extensive monitoring of Daimler AG and its subsidiaries, including DCCL, over the three-year term of the monitorship. During the monitorship, the Monitor made a total of 33 major recommendations. Without objection, Daimler AG adopted and implemented all 33 recommendations on behalf of itself and its subsidiaries, including DCCL. Pursuant to an amendment to the DPA with Daimler AG also filed on April 4, 2012, the Monitor certified on October 29, 2012 that "the overall compliance program of Daimler, including its policies and procedures, is reasonably designed and implemented to prevent and detect violations within Daimler of the FCPA and other applicable anti-corruption laws." See U.S. v. Daimler AG. Crim. No. 1:10-CR (RJL, Dkt. Entry No. 10, Based on the foregoing, the government concludes that DCCL has satisfied its obligations under the DPA with respect to the corporate compliance monitorship. 9. DCCL has also fully met its obligation of cooperating with the United States. See DPA f Pursuant to the DPA, if DCCL fully complied with all of its obligations under the DPA, the United States would not continue the criminal prosecution against DCCL and would move to dismiss the criminal information. DPA f Given that Daimler has paid the $93,600,000 penalty, and given that DCCL has fully cooperated with the United States, met its compliance obligations and has not otherwise 3

4 Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 4 of 5 breached the DPA, the United States believes that dismissal is appropriate under the circumstances and is called for by the DPA. WHEREFORE, pursuantto Rule 48(a ofthe Federal Rules of Criminal Procedure and by leave of Court endorsed hereon, the United States hereby moves to dismiss with prejudice the criminal information filed in the instant case. A proposed order is submitted herewith. Respectfully submitted, JEFFREY H. KNOX CHIEF, FRAUD SECTION Criminal Division United States Department of Justice DATED: May 2, 2013 Washington, D.C. By: Isl Nicholas Acker Nicholas Acker Senior Trial Attorney Fraud Section, Criminal Division U.S. Department of Justice 1400 New York Avenue, N.W. Washington, D.C Tel: ( Fax: ( nicholas.ackerfgjusdoj.gov 4

5 Case 1:10-cr RJL Document 11 Filed 05/02/13 Page 5 of 5 CERTIFICATE OF SERVICE I certify that on May 2, 2013,1 am serving a copy of the foregoing motion and a proposed order using the CM/ECF system on the following: F. Joseph Warin, Esq. Gibson, Dunn & Crutcher, LLP 1050 Connecticut Avenue, NW Washington, DC fwarin@gibsondunn.com Counsel for Defendant /s/ Nicholas Acker Nicholas Acker Senior Trial Attorney Fraud Section, Criminal Division U.S. Department of Justice 1400 New York Avenue, N.W. Washington, D.C Tel: ( Fax: ( nicholas.acker@usdoj.gov 5