UTStarcom will pay $3 million in fines to settle claims that it bribed employees of Chinese telecom companies in order to gain business contracts.
The U.S. Justice Department said the company has admitted that it violated the Foreign Corrupt Practices Act by paying for employees at state-owned telecom companies to visit popular tourist destinations in the U.S., including Hawaii, New York and Las Vegas, in order to obtain contracts. UTStarcom then falsely recorded the cost of these trips as training expenses.
UTStarcom reached agreements with the Justice Department's Criminal Division and the Securities and Exchange Commission to pay two separate $1.5 million fees.
For more:
- see this AP article
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