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Originally published Wednesday, November 19, 2008 at 9:41 AM

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2 former Siemens managers convicted

Two Siemens AG employees were convicted Wednesday of involvement in a corruption scandal at the industrial conglomerate and sentenced to probation and fines.

MUNICH, Germany —

Two Siemens AG employees were convicted Wednesday of involvement in a corruption scandal at the industrial conglomerate and sentenced to probation and fines.

Ernst Keil-von Jagemann, 58, and Wolfgang Rudolph, 68, were both convicted of accessory to breach of trust charges after admitting during their Munich state court trial to being part of a slush fund operation to win business.

Keil-von Jagemann was sentenced to two years' probation and fined euro12,000 ($15,160) while Rudolph received 9 months probation and a euro20,000 ($25,270) fine.

Siemens, which makes products ranging from wind turbines to trams has been embroiled in a far-reaching corruption scandal that has cost the company some euro1.9 billion euros (nearly $3 billion) - a figure that also includes expenses such as back tax payments and advisory fees.

Both men convicted Wednesday were assistants to Reinhard Siekaczek, a former Siemens manager who was convicted of breach of trust this summer and sentenced to two years' probation and fined euro180,000 ($227,410).

During his trial, Siekaczek acknowledged setting up slush funds while a manager at the ICN fixed-line telephone network division.

Siekaczek allegedly set up a complex network of shell corporations to siphon off company money over several years. Prosecutors said the money was used as bribes to help secure contracts abroad by paying off would-be suppliers, government officials and potential customers.

At the time of his conviction, the judge said it was not been possible to determine whether company executives knew about the bribes.

Copyright © 2008 The Seattle Times Company

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