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SEC v. Steven J. Ott and Roger Michael Young

 
:
ITXC Corp. - Ott, Steven J.
:
SEC Civil
:
September 6, 2006
:
SEC v. Steven J. Ott and Roger Michael Young
:
SEC v. Ott, No. 3:06-cv-04195 (D.N.J. 2006)
:
Telecommunications-Other/Multi
:
Nigeria, Rwanda, Senegal
:
1999; 2000; 2001; 2002; 2003; 2004
:
Senior Officials of government-owned telephone companies in Nigeria, Rwanda, and Senegal.
:
Ott settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint:
Steven J. Ott conspired with co-workers and subordinates at ITXC, Inc., ("ITXC") to violate the FCPA by helping arrange agent contracts with government officials in Nigeria, Rwanda, and Senegal that paid those officials a portion of the revenue from contracts the officials helped ITXC acquire.
Ott was Executive Vice-President of Global Sales at ITXC, which is a provider of Voice Over Internet Protocol telecommunication services. In 2002, ITXC and NITEL, a telecommunications company wholly owned by the Nigerian government, contracted with Standard Digital International to provide consulting services and otherwise help ITXC develop contracts with NITEL. NITEL's General Director of International Relations signed the contract as Standard Digital's CEO. The contract required ITXC to pay Standard Digital, i.e., the Nigerian official, a retainer fee of $10,000 and a commission of 12% of ITXC's profits from any contracts with NITEL or the Nigerian government. Between November 2002 and May 2004, ITXC wire-transferred approximately $166,541 from its bank accounts in New Jersey to Standard Digital's bank account in Nigeria.
In 2002, ITXC also negotiated a contract to provide and purchase internet telephone and telecommunications services with Rwandatel, a telecommunications company wholly owned by the Rwandan government. ITXC entered into an agency agreement with a Rwandatel official that required ITXC to pay the official $0.01 per minute for all telephone traffic serviced by ITXC. ITXC wired more than $26,155 directly to the Rwandatel official's bank account in Dubai.
In 2001, ITXC negotiated a contract with Sonatel, a Senegalese telecommunications company partially owned by the Senegalese government and France Telecom. A Sonatel employee signed an agency agreement that required ITXC to pay him a commission in revenues earned on Sonatel contracts. ITXC wired over $74,772 to the employee's bank account in France.
ITXC agents also made similar offers to officials in Ghana and Mali in an effort to obtain contracts with Ghana Telecom and Sotelma, respectively, but never formally contracted or issued payments to officials in either country.
:
Aiding and abetting books and records, Aiding and abetting internal controls, Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
:
Injunction/Cease and desist
:
Not stated.
:
0
:
Employee of Issuer
:
Other Senior Officer
:
U.S.
:
Contract Procurement/Retention
:
11,509,733
:
Wire/check
:
Sales Agent/Consultant
:
267,469
:
France, Nigeria, United Arab Emirates
:
France, Nigeria, United Arab Emirates, United States
:
No
:
No