UTstarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery : RushPRNews - Newswire & Global Press Release Distribution

 
Bookmark and Share

UTstarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery

December 31, 2009

UTstarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery
UTstarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery in China
Alameda, CA (RPRN) 12/31/09 — UTstarcom Inc. Agrees to Pay $1.5 Million Penalty for Acts of Foreign Bribery in China

UTStarcom Inc. (UTSI) has entered into an agreement with the Department of Justice, agreeing to pay a $1.5 million fine for violations of the Foreign Corrupt Practices Act (FCPA) by providing travel and other things of value to foreign officials, specifically employees at state-owned telecommunications firms in the People’s Republic of China. The announcement was made today by Assistant Attorney General Lanny A. Breuer of the Criminal Division.

UTSI, a Delaware corporation headquartered in Alameda, Calif., and listed on the Nasdaq, is a global telecommunications company that designs, manufactures and sells network equipment and handsets. According to information contained in the agreement, UTSI has historically focused on Asian markets, with a particular emphasis on China. UTSI generally does business in China through its wholly-owned subsidiary, UTStarcom China Co. Ltd. (UTS-China).

As described in the agreement, UTSI has acknowledged responsibility for the actions of UTS-China and its employees and agents, who arranged and paid for employees of Chinese state-owned telecommunications companies to travel to popular tourist destinations in the United States, including Hawaii, Las Vegas and New York City. The trips were purportedly for individuals to participate in training at UTSI facilities. In fact, UTSI had no facilities in those locations and conducted no training. UTS-China then falsely recorded these trips as "training" expenses, while the true purpose for providing these trips was to obtain and retain lucrative telecommunications contracts.

The agreement requires that UTSI pay a $1.5 million penalty, implement rigorous internal controls and cooperate fully with the Department. The agreement recognizes UTSI’s voluntary disclosure, thorough self-investigation of the underlying conduct, the cooperation provided by the company to the Department, and the remedial efforts undertaken by the company. As a result of these factors, the Department has agreed not to prosecute UTSI or its subsidiaries for the making of improper payments, provided that UTSI satisfies its ongoing obligations under the agreement.

In a related matter, UTSI reached a settlement today with the U.S. Securities and Exchange Commission under which it agreed to pay an additional $1.5 million penalty and satisfy additional obligations for a period of four years.

This case is being prosecuted by Trial Attorney James M. Koukios of the Criminal Division’s Fraud Section.

Main image credits: UT Starcom
Click here to see all news from this author/company

Filed Under: BANKING AND FINANCIAL NEWS, BREAKING NEWS, COURT NEWS, Featured, PRESS RELEASE

RUSH PR NEWS newswire and press release services at rushprnews.com / Anne Howard annehowardpublicist.com

Content- Legal Responsibility - All material is copyrighted - You may repost but you MUST link back to the original post on your page and acknowledge Rush PR News as the news source. Rush PR News is not legally and/or morally responsible for content of press releases, opinions expressed or fact-checking.

Rush PR News cannot be held legally responsible for material published and distributed through its newswire service or published in its press-room and therefore cannot be sued for published material. Third-party must be contacted directly to dispute content.

Rush PR News is not the contact for material published.

RSSFeed PRESS & SOCIAL MEDIA RELEASES

Canadian actor/producer Corey Large presents the drug drama ‘Kid Cannabis’ out April 18

Los Angeles/Vancouver 04/14/14 ·  For Canadian actor/producer Corey Large, the drug drama...

Newborn Foundation Presents at 13th Design of Medical Devices Conference on Innovation for Developing Nations

MINNEAPOLIS, MN 04/10/14 · - Newborn Foundation co-founder and chairman Annamarie Saarinen...

Uk firms can succeed at exporting, says Ultraseal International

Ann Arbor, MI 04/09/14 · Understanding markets overseas is the key to exporting...

First App Created for General Public by Academy's Sci-Tech Council

Beverly Hills, Calif. 04/07/14 · ACADEMY COLOR PREDICTOR LAUNCHES ON iTUNES –The Academy Color...

Grand Estates Auctions sells highest priced home in five years in Pasco County, Florida.

Charlotte, North Carolina 04/04/14 · Sale achieved at auction sets a new benchmark...

Students Create Online Planetary Improvement Network

BOURNEMOUTH, UK 04/04/14 ·  Students from Oxford and Harvard, in cooperation with...

Sharing Meals Online May Reduce Loneliness and Improve the Dining Experience

BOURNEMOUTH, UK 04/04/14 ·  An online eating trend that began in Korea...

Consiglio’s Kitchenware & Gift Offer 4-Year Warranty on Latest Saeco Espresso Machines

Toronto, ON 04/01/14 · Leading provider of brand name kitchenware, Consiglio’s Kitchenware...

5 Tips for Finding A Reputable Luxury Property Auction House

Charlotte, North Carolina 03/28/14 · - Advice for Homeowners Seeking to Auction Their...

UN Commission Call for Increased Efforts to Promote Gender Equality in ‘Post-2015 Agenda’ Welcomed

Toronto, ON 03/28/14 · Children’s organization, Plan International welcomes the strong call...

Spring forward: time to refresh how we approach Google

San Francisco/London/Montreal 03/28/14 · There have been tremendous changes the past year...

Reduce Your Business Waste

London, UK 03/24/14 · With the issue of climate change not likely...

Craig Jones Joins Community Foundation of Collier County

Naples, FL 03/22/14 · Community Foundation of Collier County President/CEO, Eileen Connolly-Keesler,...

Springtime public relations is effervescent

San Francisco/London/Montreal 03/21/14 · Following a gruesome winter, Spring 2014 is promising...