Employees of Hellenic Telecommunications Organisation S.A., which is partially owned by the Greek government, and certain of its subsidiaries.
In early 2003, Comverse Limited, a wholly-owned, Israel-based subsidiary of Comverse Technology, Inc., allegedly engaged an agent to facilitate sales in Greece through a Cypriot entity, Fintron Enterprises Ltd. (Fintron). According to the SEC, Fintron did not develop business for Comverse Limited. Instead, Comverse Limited employees allegedly negotiated orders with customers, used Fintron to process improper payments made to procure business, and directed the agent's activities. Comverse Limited allegedly paid the agent a fee, 85% of which was used as a bribe amount, and then falsely recorded these bribes as "commissions." These allegedly falsified records were then consolidated into Comverse Technology Inc.'s financial records.
As a part of this scheme, Comverse Limited allegedly paid employees of the Hellenic Telecommunications Organisation S.A. (OTE), which is partially owned by the Greek government, in exchange for the facilitation of business. According to the SEC, the arrangement continued through 2006, during which time Comverse Limited made approximately $536,000 in improper payments to individuals connected to OTE, including employees of OTE subsidiaries.
Books and records (Issuer), Internal controls (Issuer)
Disgorgement, Injunction/Cease and desist
Disgorgement of $1,249,614 and pre-judgment interest of $358,887.