Oracle to pay $23 mn to settle a second SEC bribery case

Oracle will pay about $23 million to resolve charges its units in Turkey, the United Arab Emirates and India used funds to bribe foreign officials in order to win business, the U.S. Securities and Exchange Commission said on Tuesday.
Oracle Sparc server
The case covered alleged wrongdoing from 2014 to 2019, and is the second time the SEC charged Oracle with violating the federal Foreign Corrupt Practices Act (FCPA), an anti-bribery law.

The SEC’s investigation was conducted by Samantha Martin and Laura Bennett and supervised by David Reece.

Oracle’s Turkey and UAE units used funds to pay for foreign officials to attend technology conferences in violation of Oracle policies, Reuters news report said.

Employees of the Turkey unit used the funds to pay for the officials’ spouses and children to accompany them, or take side trips to Los Angeles and Napa Valley, California.

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, Charles Cain, chief of the SEC’s FCPA unit, said in a statement.

Oracle, based in Austin, Texas, agreed to pay $15 million civil fine and $7.9 million of disgorgement and interest. It did not admit or deny wrongdoing in agreeing to settle.

“The conduct outlined by the SEC is contrary to our core values and clear policies, and if we identify such behavior, we will take appropriate action,” Oracle spokesman Michael Egbert said.

In 2012, Oracle agreed to pay a $2 million fine to settle SEC charges concerning the creation of millions of dollars of unauthorized side funds by Oracle India from 2005 to 2007.

Related News

Latest News

Latest News