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SEC v. Veraz Networks, Inc.

 
:
Veraz Networks, Inc.
:
SEC Civil
:
June 29, 2010
:
SEC v. Veraz Networks, Inc.
:
SEC v. Veraz Network, Inc., No. 10-cv-2849 (N.D. Cal. 2010)
:
China, Viet Nam
:
2007; 2008
:
Officials at a telecommunications company controlled by the Chinese government; CEO of a government-controlled telecommunications company in Vietnam.
:
Between 2007 and 2008, a consultant hired by Veraz gave approximately $4,500 in gifts to officials at a telecommunications company controlled by the Chinese government to secure a business deal for Veraz. A Veraz supervisor approved what he described as the “gift scheme” by email. In addition, the consultant offered another $35,000 to an official at the telecommunications company to secure a second deal worth $233,000. The second offer was discovered by Veraz and the deal was cancelled before Veraz received any money for the transaction. During the same period, a Singapore-based reseller through which Veraz sold products to a government-controlled telecommunications company in Vietnam made or offered improper payments to the CEO of the Vietnamese company to obtain business for Veraz. Veraz also approved and reimbursed this reseller for questionable gifts and entertainment expenses related to the Vietnamese telecommunications company.
On September 29, 2010, the SEC filed a settled enforcement action against Veraz, charging Veraz with violating the books and records and internal controls provisions of the FCPA by failing to accurately record the improper payments on its books and records and failing to devise and maintain a system of effective internal controls to prevent such payments. Without admitting or denying the allegations, Veraz consented to the entry of a final judgment permanently enjoining Veraz from future similar violations and requiring Veraz to pay a penalty of $300,000.
:
Books and records (Issuer), Internal controls (Issuer)
:
Civil penalty, Civil Settlement, Injunction/Cease and desist
:
300,000
:
0
:
Issuer
:
U.S.
:
Contract Procurement/Retention
:
233,000
:
Gifts
:
Sales Agent/Consultant
:
39,500
:
:
No