General counsel were offered a key lesson to look closely for fraud risks everywhere in their company as Alameda, Calif.-based UTStarcom Inc. entered a settlement agreement with the Justice Department on Dec. 31 to pay a $1.5 million fine because employees at a subsidiary in China violated the Foreign Corrupt Practices Act.
The global telecommunications company, which designs, manufactures, and sells network equipment, does business in China through its wholly owned subsidiary, UTStarcom China Co. According to the settlement, employees and agents of that subsidiary violated the FCPA when they paid for employees of Chinese state-owned telecommunications companies to travel to tourist spots in the United States, including Hawaii, Las Vegas and New York City.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
