SEC Sues IBM for Alleged Bribery in Korea, China
The U.S. Securities and Exchange Commission has sued IBM for allegedly bribing officials in South Korea and China.
The SEC lawsuit, filed in Washington, D.C., alleges that IBM violated the Foreign Corrupt Practices Act by providing cash payments, improper gifts, travel and entertainment to officials in South Korea and China from 1998 through 2009.
According to reports, IBM has consented to pay disgorgement of $5.3 million, $2.7 million of prejudgment interest and $2 million in civil penalties.
An IBM spokesman told eWEEK:
"IBM has agreed to settle an enforcement action with the U.S. Securities and Exchange Commission relating to activities by employees of IBM Korea and IBM China during the period from 1998 through 2009. IBM insists on the highest ethical standards in the conduct of its business and requires all employees to follow its policies and procedures for conducting business."
The mission of the SEC is to protect investors, maintain fair, orderly and efficient markets, and facilitate capital formation.