Settlements

ST-24
Alcatel-Lucent S.A. (Matter #11)
Alcatel-Lucent S.A.
United States
Securities and Exchange Commission
Costa Rica, Honduras, Malaysia, Taiwan
2010
12/27
Costa Rica
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profit
$45,372,000.00
$45,372,000
$0
$0
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Bribery of Foreign Officials, Falsification of Books and Records, Internal Controls Violations
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission, the Commission filed a complaint which "alleges that Alcatel's bribes went to government officials in Costa Rica, Honduras, Malaysia, and Taiwan between December 2001 and June 2006. An Alcatel subsidiary provided at least $14.5 million to consulting firms through sham consulting agreements for use in the bribery scheme in Costa Rica. Various high-level government officials in Costa Rica received at least $7 million of the $14.5 million to ensure Alcatel obtained or retained three contracts to provide telephone services in Costa Rica. The SEC alleges that the same Alcatel subsidiary bribed officials in the government of Honduras to obtain or retain five telecommunications contracts. Another Alcatel subsidiary made bribery payments to Malaysian government officials in order to procure a telecommunications contract. An Alcatel subsidiary also made illegal payments to various officials in the government of Taiwan to win a contract to supply railway axle counters to the Taiwan Railway Administration. According to the SEC's complaint, all of the bribery payments were undocumented or improperly recorded as consulting fees in the books of Alcatel's subsidiaries and then consolidated into Alcatel's financial statements. The leaders of several Alcatel subsidiaries and geographical regions, including some who reported directly to Alcatel's executive committee, either knew or were severely reckless in not knowing about the misconduct. [ ] The SEC acknowledges the assistance of [ ] the Office of the Attorney General in Costa Rica; the Fiscalia de Delitos Econóicos, Corrupció Tributarios in Costa Rica; and the Service Central de Preion de la Corruption in France." (Source: US Securities and Exchange Commission Litigation Release No. 21795/ December 27, 2010, SEC v. Alcatel-Lucent, S.A., Civil Action No. 1:10-CV-24620-GRAHAM (S.D. FL.) (December 27, 2010), "SEC Files Settled Foreign Corrupt Practices Act Charges Against Alcatel-Lucent, S.A. With Total Disgorgement and Criminal Fines of Over $137 Million.")