Settlements

ST-491
Qualcomm Incorporated
Qualcomm Incorporated
United States
Securities and Exchange Commission
China
2016
3/1
Unknown
Legal Person
Civil
Cease and Desist Order
Civil Penalty
$7,500,000
$0
$0
$7,500,000
$0
NA
$0
NA
Art.16
Art. 1, Art. 2, 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 Securities and Exchange Commission Press Release related to the US telecommunications company, "Qualcomm Incorporated has agreed to pay $7.5 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by hiring relatives of Chinese government officials deciding whether to select the company’s mobile technology products amid increasing competition in the international telecommunications market. An SEC investigation found that Qualcomm also provided gifts, travel, and entertainment to try to influence officials at government-owned telecom companies in China. With insufficient internal controls to detect improper payments, Qualcomm misrepresented in its books and records that the things of value provided to foreign officials were legitimate business expenses. [ ] The SEC’s order finds that Qualcomm violated the anti-bribery, internal controls, and books-and-records provisions of the Securities Exchange Act of 1934. Without admitting or denying the findings, Qualcomm agreed to pay the $7.5 million penalty and self-report to the SEC for the next two years with annual reports and certifications of its FCPA compliance. " (Source: US SEC Press Release, "SEC: Qualcomm Hired Relatives of Chinese Officials to Obtain Business," March 1, 2016, at http://www.sec.gov/news/pressrelease/2016-36.html)