Alcatel To Pay $137 Million In Bribery Settlement - InformationWeek
IoT
IoT
Healthcare // Analytics
News
12/28/2010
03:43 PM
50%
50%
RELATED EVENTS
Securing Your Endpoints from Ransomware & Other Trending Attacks
Jun 28, 2017
Attackers have shifted their tactics. They've discovered new ways to re-engineer tactics to make t ...Read More>>

Alcatel To Pay $137 Million In Bribery Settlement

The U.S. Securities and Exchange Commission found the telecom made illegal payments to foreign government officials in exchange for favorable business treatment.

The U.S. Securities and Exchange Commission has found that Alcatel began bribing foreign government officials nearly a decade ago and the company, now called Alcatel-Lucent, has agreed to pay $137 million in penalties relating to the violations, according to an SEC announcement issued this week.

The SEC complaint charged that executives acting on Alcatel's behalf concealed undocumented payments to government officials in Costa Rica, Honduras, Malaysia, and Taiwan between December 2001 and June 2006. Alcatel merged with Lucent Technologies late that year in a deal that has made Alcatel the dominant partner in the merger. The company is based in Paris.

"Alcatel and its subsidiaries failed to detect or investigate numerous red flags suggesting their employees were directing sham consultants to provide gifts and payments to foreign government officials to illegally win business," said Robert Khuzami, director of the SEC's division of enforcement, in a statement. "Alcatel and its subsidiaries failed to detect or investigate numerous red flags."

The SEC stated that the payments were improperly recorded and were consolidated into the Alcatel's financial statements.

Without admitting any wrongdoing, the company agreed to pay more than $45 million to settle the SEC charges and also to pay an additional $92 million to the Justice Department on related charges. Alcatel was charged with violating the Foreign Corrupt Practices Act, which prohibits U.S. companies and companies whose stock trades on U.S. exchanges from making illegal payments to foreign governments to obtain favorable treatment.

An Alcatel-Lucent executive was quoted in media reports saying the firm has implemented procedures that will prevent such violations from occurring again.

SEE ALSO:

Alcatel-Lucent Unveils 10GbE Switch

Merger Of Lucent And Alcatel Is Complete

Chairman, CEO To Leave Alcatel-Lucent After More Losses

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll