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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 Networks, Inc., No. 5:10-cv-2849 (N.D. Cal. 2010)
:
Veraz became a public company in 2007, and in announcing the settlement, the SEC stated "It is particularly important that newly public companies doing business overseas establish the appropriate policies and procedures to prevent a culture of payment to foreign officials from developing."
:
Telecommunications-Other/Multi
:
2007; 2008
:
Employees of government-controlled telecommunications companies in China and Vietnam
:
According to the complaint filed by the SEC, Veraz Networks, Inc. ("Veraz"), a Delaware telecommunications corporation with headquarters in San Jose, California, made and offered payments to employees of government-controlled telecommunications companies in China and Vietnam from 2007 to 2008.

The SEC's complaint alleges that Veraz violated the books and records and internal controls provisions of the FCPA. Allegedly, in 2007 and 2008 Veraz used a consultant in China to offer and provide $39,500 in gifts and an improper payment to officials at a government-controlled telecommunications company in China to secure business for Veraz. According to the SEC's complaint, a Veraz supervisor referred to it as a "gift scheme." Allegedly, during the same time period, Veraz, through a Singapore-based reseller, made or offered improper payments to the CEO of a government-controlled telecommunications company in Vietnam to win business for Veraz. According to the SEC's complaint, Veraz also approved and reimbursed employees for questionable expenses related to the Vietnam telecommunications company including gifts and entertainment for employees and flowers for the CEO's wife.

Without admitting or denying the allegations in the SEC's complaint, Veraz consented to the entry of a final judgment permanently enjoining Veraz from future violations and ordering 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.
:
United States
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Gifts
:
Sales Agent/Consultant
:
39,500
:
China, Viet Nam
:
No
:
No