• IBM Agrees to Settle Foreign Bribery Allegations for $10 Million
  • March 28, 2011 | Author: Zaldwaynaka (Z) Scott
  • Law Firm: Kaye Scholer LLP - Chicago Office
  • New York-based International Business Machine Corporation (“IBM”) has agreed to pay $10 million to settle a complaint filed by the Securities and Exchange Commission (“SEC”) alleging that IBM subsidiaries and a majority-owned joint venture provided cash payments and improper gifts, travel and entertainment to foreign government officials in South Korea and China in violation of the Foreign Corrupt Practices Act (“FCPA”). These payments were recorded as “legitimate business expenses.” The company was charged under the provisions of the FCPA that make it unlawful to fail to make and keep accurate books and records, and to fail to maintain an adequate internal control system to detect and prevent bribery. The complaint further alleged that the illegal conduct occurred over a 10-year time period and involved over 100 IBM employees overall.