More than half a million dollars was apparently improperly paid by New York-based communications software company Comverse Technology Inc., through a Tel Aviv-based subsidiary to people in Greece in order to obtain purchase orders from Greek telecommunications company OTE. After discovering that its actions likely violated the Foreign Corrupt Practices Act, Comverse self-reported and cooperated with DoJ and the SEC, agreeing to pay a $1.2 million penalty as part of a non-prosecution agreement with DoJ and $1.6 million in disgorgement and pre-judgment interest as part of an agreement with the SEC. Read DoJ’s statement here.
Whistleblowers who are aware of FCPA violations may be entitled to a substantial reward under the Dodd-Frank Wall Street Reform & Consumer Protection Act. To report FCPA violations, contact Frohsin & Barger.