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Oracle Becomes The 20th Corporate FCPA Repeat Offender

By on September 28, 2022 in 2022 Enforcement Action, Customer Discounts, Distributor Issues, India, Oracle, Repeat Offenders, SEC Enforcement Action, Technology Industry, Turkey, United Arab Emirates
oracle

As highlighted in this prior post, in 2012 Oracle resolved a $2 million SEC Foreign Corrupt Practices Act enforcement action finding that “Oracle violated the books and records and internal accounting controls provisions of the FCPA by failing to prevent Oracle India Private Limited from keeping unauthorized side funds at distributors from 2005 to 2007.”

As a condition of settlement, Oracle consented to the entry of a final judgment, among other things, “permanently enjoining it from future violations” of the books and records and internal controls provisions and in resolving the matter the SEC noted the “significant enhancements” Oracle made to its FCPA compliance program.

Yesterday, the SEC announced a $22.9 million FCPA enforcement action against Oracle “to resolve charges that it violated provisions of the FCPA when subsidiaries in Turkey, the United Arab Emirates, and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019.”

In resolving a second FCPA enforcement action, Oracle becomes the 20th corporate FCPA repeat offender (see here for the list).

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Six Years After Juniper Networks Disclosed FCPA Scrutiny, It Resolves A $11.7 Million Joke Of An Enforcement Action Based On Russia And China Subsidiary Conduct

By on August 30, 2019 in 2019 Enforcement Actions, China, Customer Discounts, Juniper Networks, Russia, SEC Enforcement Action, Technology Industry, Travel and Entertainment
junipernetworks

As highlighted in this previous post, in mid-2013 Juniper Networks disclosed that it was under FCPA scrutiny. Over six years later, the SEC announced yesterday that the company agreed to pay approximately $11.7 million to resolve the scrutiny.

As highlighted below, the enforcement action was based on the conduct of Russia and China subsidiary employees. In Russia, certain sales employees of the Russian representative office of Juniper’s subsidiary secretly agreed with third party channel partners to provide discounts to customers that were parked in off-book funds some of which were used to pay for customer trips, including trips for government officials, some of which were predominately leisure in nature. In China, certain sales employees of Juniper’s Chinese subsidiaries falsified trip and meeting agendas for customer events in seeking approval from Juniper’s Legal Department.

Based on the conduct alleged in the enforcement action (which is beyond any conceivable statute of limitations) as well as actual FCPA legal authority, the enforcement action is a $11.7 million joke.

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Microsoft Resolves Long-Standing FCPA Scrutiny By Agreeing To Pay $25.3 Million

By on July 23, 2019 in 2019 Enforcement Actions, DOJ Enforcement Action, Hungary, Margins, Microsoft, Saudi Arabia, SEC Enforcement Action, Technology Industry, Thailand, Turkey
microsft

Microsoft has been under Foreign Corrupt Practices Act scrutiny since early 2013 (see here for the prior post). Yesterday, the DOJ and SEC announced here and here an aggregate $25.3 million enforcement action against the company and a Hungarian subsidiary concerning conduct in Hungary, Saudi Arabia, Thailand and Turkey.

The enforcement action involved a DOJ component involving a non-prosecution agreement involving MS Hungary in which the entity agreed to pay a $8.8 million criminal penalty and an SEC administrative order against Microsoft finding violations of the FCPA’s books and records and internal controls provisions in which the company agreed, without admitting or denying the SEC’s findings, to pay disgorgement and prejudgment interest of approximately $16.5 million.

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Cognizant Technology Solutions Resolves $25 Million SEC Enforcement Action In Connection With Various Licenses And Permits In India

By on February 15, 2019 in 2019 Enforcement Actions, Cognizant Technology Solutions, DOJ Enforcement Action, Permits / Licenses / Customs / Tax, SEC Enforcement Action, SOX Certification Issues, Technology Industry
cognizant

This previous post highlighted the DOJ and SEC’s individual enforcement action against Gordon Coburn and Steven Schwartz (former executives of Cognizant Technology Solutions) in connection with a planning permit in India.

This post highlights the SEC’s enforcement action (as well as the DOJ’s so-called declination letter) against the company based on the same core conduct in which the company, without admitting or denying the SEC’s findings, agreed to pay approximately $25 million in disgorgement and prejudgement interest.

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SEC Brings FCPA Enforcement Action Against Former Executive Of Harris Corp’s Dissolved Chinese Subsidiary

By on September 15, 2016 in 2016 Enforcement Actions, Anything of Value, China, Executive Enforcement Action, Gifts, Harris Corporation, Healthcare Providers As Foreign Officials, Individual Enforcement Action, Jun Ping Zhang, Merger Issues, SEC Enforcement Action, Technology Industry, Travel and Entertainment
Ping

As highlighted in this prior post, in April 2011 Harris Corporation completed an acquisition of Carefx and in the process acquired its subsidiaries including Carefx China. In connection with its integration activities and the subsequent audit of the financials of the Carefx China operations, Harris Corp. became aware that certain entertainment, travel and other expenses in connection with the Carefx China operations may have been incurred or recorded improperly. In response, Harris Corp. voluntarily disclosed to the DOJ and SEC.

As highlighted in this prior post, a few months ago Harris Corp. disclosed that “during the second quarter of fiscal 2016, the DOJ advised us that they have determined not to take any action against us related to this matter.” The same disclosure stated that the company is “continuing to cooperate with the SEC regarding its investigation.”

In the meantime, earlier this week the SEC announced this administrative action finding that Jun Ping Zhang (pictured – a U.S. citizen and former Chairman and CEO of CareFx China who was terminated in mid-2012) violated the Foreign Corrupt Practices Act. Zhang is currently Senior Vice President, Product Innovation and Chief Technology Officer at MedeAnalytics. (See also here).

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