Ericsson’s Commission Payments Plan Investigated by SEC in U.S.
Ericsson got a request for information in March after media reports on its system for paying trade agents in Romania in the late 1990s and early 2000s, Fredrik Hallstan, a spokesman for Ericsson, said today. The request related to three former employees who are suspected to have embezzled almost 150 million kronor ($23 million) while they had access to cash meant for paying contacts with access to local telecommunications carriers, he said. Ericsson no longer uses such third-party agents.
Ericsson is cooperating with the U.S. and is providing the information requested, Hallstan said in a phone interview.
“This isn’t about corruption, it’s about these three guys,” who are alleged to have embezzled money from Stockholm-based Ericsson, Hallstan said, without identifying the people.
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