Photo: flickr / Revolweb
Tech giant Oracle will pay $2 million to settle charges that a subsidiary made payments to bogus vendors in India.The Securities and Exchange Commission said Thursday it charged Oracle with violating the Foreign Corrupt Practices Act after the subsidiary kept about $2.2 million of cash off the books by making the phony payments.
Oracle’s employees paid supposed local vendors that never actually provided any services to Oracle, the SEC claimed.
“Through its subsidiary’s use of secret cash cushions, Oracle exposed itself to the risk that these hidden funds would be put to illegal use,” Marc J. Fagel, director of the SEC’s San Francisco office, said in a statement Thursday.
Oracle voluntarily disclosed the FCPA violations and fired the employees who were involved, according to the SEC.
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