Background

The Securities and Exchange Commission announced April 24 that two former executives of a Hungarian telecommunications company have agreed to financial penalties and employment restrictions to settle charges that they violated the Foreign Corrupt Practices Act.

The company paid a $95 million penalty in December 2011 to settle parallel civil and criminal charges that it bribed officials in Macedonia and Montenegro to win business and shut out competition. The company’s former CEO and former chief strategy officer were charged with orchestrating the use of sham contracts to funnel millions of dollars in corrupt payments. 

The SEC has now reached settlements under which these individuals agreed to pay penalties of $250,000 and $150,000, respectively. Both also agreed to a five-year bar from serving as an officer or director of any SEC-registered public company. A third executive, the company’s former director of business development and acquisitions, previously agreed to a settlement requiring him to pay a $60,000 penalty for falsifying the company’s books and records in connection with the bribery scheme.

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