Comverse Technology to Pay $2.8 Million to Settle U.S. Bribery Allegations
Comverse Technology Inc. (CMVT), a maker of voice-mail software, agreed to pay a total of $2.8 million in settlements for violations of the Foreign Corrupt Practices Act.
The company, based in New York, settled with the U.S. Securities and Exchange Commission for $1.6 million and with the U.S. Justice Department for $1.2 million, according to separate statements by the government.
“The agreement recognizes the company’s thorough self- investigation and the results of its investigation, voluntary disclosure of the underlying conduct and full cooperation with the department,” the Justice Department said in its statement.
Comverse said last month that Chief Executive Officer Andre Dahan will depart, citing the need for new leadership after a period of financial restatements and a stock options backdating scandal that led to federal charges against his predecessor.
Paul D. Baker, a spokesman for Comverse, declined to comment.
The FCPA violations arose from $536,000 in improper payments made from 2003 to 2005 to individuals connected to OTE, a unit of Athens-based Hellenic Telecommunications Organization SA (HTO), to obtain purchase orders, according to the Justice Department, citing a non-prosecution agreement.
The payments were inaccurately characterized as legitimate commissions on the books of a Comverse unit in Tel Aviv, according to the statement.
The SEC case is Securities and Exchange Commission v. Comverse Technology Inc., 11-cv-01704, U.S. District Court, Eastern District of New York (Brooklyn).
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