The Securities and Exchange Commission (“SEC”) has filed charges against Veraz Networks, Inc. (“Veraz” or “Company”), a California-based telecommunications company, for violations of the Foreign Corrupt Practices Act (“FCPA”). The SEC accuses Veraz resellers, consultants, and employees of making and offering payments to employees of government-controlled telecommunications companies in China and Vietnam to improperly influence these foreign officials to award or continue to do business with Veraz. According to the SEC‘s complaint against Veraz, one of the Company‘s supervisors referred the payments as the “gift scheme.”
Notably, the SEC‘s complaint focuses on Veraz‘s failure to accurately record these improper payments on the Company’s books and Veraz‘s failure to implement a system of effective internal accounting controls to prevent such improper behavior. As a result, the SEC is seeking both a permanent injunction against Veraz from violations of the records and internal controls provisions of the FCPA, and a civil monetary penalty against the Company as well.
Clients who wish to learn more regarding the specific facts of this case may review the full text of the SEC‘s complaint here:
Questions should be directed to Charles H. Helein of the firm. He asks anyone receiving this to let him know of any concerns they may have regarding compliance with the requirements of the Foreign Corrupt Practices Act.
