Embattled Ericsson reshuffles compliance function with new hire

Dresser will join the executive team as senior vice president, chief legal officer and head of group function legal affairs and compliance, Ericsson announced Wednesday in a press release. He previously served as general counsel for Veon, a Dutch telecommunications company.

Dresser’s appointment comes the same month Ericsson was notified by the Department of Justice (DOJ) of a second breach of its 2019 deferred prosecution agreement (DPA) with the agency. The violations involved Ericsson’s insufficient disclosures, both before and after the DPA was signed, to the DOJ regarding evidence of corruption-related misconduct in Iraq from 2011-19. Ericsson disclosed it might have made payments to terrorist groups, including ISIS, during that period.

“Scott’s experience driving positive change will be invaluable as Ericsson expands its business and continues its cultural transformation, enhancing its governance, compliance, and controls,” said Ericsson President and Chief Executive Börje Ekholm in the press release.

Dresser stated, “I am excited to be joining and look forward to working with Börje and the entire organization to execute the strategy while focusing on operating with the highest standards of corporate governance and compliance.”

Dresser will replace Xavier Dedullen, who had led Ericsson’s compliance division since 2018. Dedullen will leave the role March 20 but remain with Ericsson for a transition period, the company said.

Laurie Waddy serves as Ericsson’s chief compliance officer, a position she’s held since 2019.

Before working for Veon, Dresser held senior leadership positions with Virgin Media, White Mountains Capital, and Conservation International. He began his career in New York in private practice with law firms Lord Day & Lord and Morgan Lewis.

Ericsson entered a $1 billion settlement in 2019 with the DOJ and Securities and Exchange Commission (SEC) to resolve violations of the Foreign Corrupt Practices Act (FCPA) revolving around the company’s use of third-party agents and consultants to pay bribes to government officials over 17 years in Djibouti, China, Vietnam, Indonesia, and Kuwait. The settlement with the SEC added Saudi Arabia to the list.

As part of the DOJ settlement, Ericsson entered into the DPA that included the imposition of an independent compliance monitor (Andreas Pohlmann) for a period of three years. In 2021, the DOJ first alerted Ericsson it determined the company had violated terms of the DPA for failing to provide certain documents and factual information.