Deutsche Telekom AG / Magyar Telekom
Deutsche Telekom AG
United States
Securities and Exchange Commission
Macedonia and Montenegro
Legal Person
Consent to Final Judgment
Disgorgement of Profits, Prejudgment Interest
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Bribery of Foreign Officials, Falsification of Books and Records
No Admission or Denial of Allegations
According to the US Securities and Exchange Commission Litigation Release, on December 29, 2011, the Commission "charged the largest telecommunications provider in Hungary and three of its former top executives with bribing government and political party officials in Macedonia and Montenegro to win business and shut out competition in the telecommunications industry. The SEC alleges that three senior executives at Magyar Telekom Plc. orchestrated, approved, and executed a plan to bribe Macedonian officials in 2005 and 2006 to prevent the introduction of a new competitor and gain other regulatory benefits. Magyar Telekom's subsidiaries in Macedonia made illegal payments of approximately $6 million under the guise of bogus consulting and marketing contracts. The same executives orchestrated a second scheme in 2005 in Montenegro related to Magyar Telekom's acquisition of the state-owned telecommunications company there. Magyar Telekom paid approximately $9 million through four sham contracts to funnel money to government officials in Montenegro. Magyar Telekom's parent company Deutsche Telekom AG also is charged with books and records and internal controls violations of the Foreign Corrupt Practices Act (FCPA)." (Source: US Securities and Exchange Commission, Litigation Release No. 22213 / December 29, 2011, SEC v. Magyar Telekom Plc. and Deutsche Telekom AG, Case No. 11 civ 9646 (S.D.N.Y.) and SEC v. Straub, et al., Case No. 11 civ 9645 (S.D.N.Y.), "SEC Charges Magyar Telekom and Former Executives with Bribing Officials in Macedonia and Montenegro.")