Global Software Company Settles FCPA Bribery Violations

A global software company settled SEC charges for anti-bribery, books and records and internal accounting controls violations under the Foreign Corrupt Practices Act ("FCPA").

In the Order, the SEC stated that the company engaged in misconduct by utilizing third-party intermediaries to provide bribes, both in the form cash and improper gifts, to foreign officials in South Africa, Malawi, Kenya, Tanzania, Ghana, Indonesia and Azerbaijan in order to secure high-value business in the public sector. The SEC found that the company recorded the bribes as "legitimate business expenses" in its books and records. The SEC also found that the company lacked the internal controls to audit third parties and its wholly owned subsidiaries.

The SEC determined that the company violated Exchange Act Sections 13(b)(2)(A) and (B) ("Periodical and other reports") and Section 30A ("Prohibited foreign trade practices by issuers").

To settle the charges, the company consented to (i) cease and desist from any future violations and (ii) pay disgorgement of over $85 million plus prejudgment interest of more than $13.4 million, to be offset by up to $59 million paid to the South African government in parallel investigations. The SEC noted that the company was a recidivist based on similar findings in a previous matter.