A grand jury indicted Siemens Medical Solutions USA, Malvern, Pa., two Siemens employees, and a joint-venture partner and its owner on charges that they set up a sham company to help Siemens secure a $49 million radiology contract at 460-bed John H. Stroger Jr. Hospital, Chicago. According to the five-count indictment in U.S. District Court, Chicago, Siemens-owned DD Industries paid Faust Villazan $500,000 to fake a partnership between DD Industries and Villazan's Faustech Industries. Stroger Hospital is owned by Cook County, Ill., and the county required bidders to set aside 30% of the contract for a county-certified minority-owned business. In a statement, Siemens said it will defend its employees and believed that the partnership with Faustech was consistent with minority business rules. Read the indictment. -- by Joseph Mantone
Siemens, others indicted in alleged contract scam
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