Computer software company Oracle Corporation (NYSE: ORCL) was the subject of a second SEC investigation, resulting in a $23 million fine for violating anti-bribery laws.
The SEC on Tuesday announced that Oracle agreed to pay the fine to resolve charges of violating the Foreign Corrupt Practices Act (FCPA) between 2016 and 2019 when the company’s subsidiaries in India, Turkey, and the UAE bribed foreign officials in exchange for their business. The SEC found that Oracle employees used slush funds to send foreign officials to technology conferences, which is against the company’s policies and procedures. In some cases, families of foreign officials also accompanied them to international conferences, paid for using the slush funds.
Although Oracle did not admit any wrongdoing in the SEC’s latest findings, it is not the first time the company faced such charges. In 2012, Oracle settled charges related to its India subsidiary creating millions of dollars in side funds, which the SEC said risked being used for illegal activities. “The creation of off-book slush funds inherently gives rise to the risk those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries,” the regulatory agency said in a statement. “This matter highlights the critical need for effective internal accounting controls throughout the entirety of a company’s operations.”
Although Oracle did not admit wrongdoing, the company did agree to pay a $15 million penalty and $8 million in disgorgement, as well as agree to cease violating the anti-bribery, books and records, and internal accounting controls sections of the FCPA.
Information for this briefing was found via the SEC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.