SEC Charges Oracle a Second Time for Violations of the Foreign Corrupt Practices Act
Oracle Corporation agreed to pay over $23 million to settle SEC charges that its subsidiaries in Turkey, UAE, and India used slush funds to bribe foreign officials between 2016 and 2019.
Oracle Corporation's subsidiaries in Turkey, UAE, and India created and used slush funds to bribe foreign officials in exchange for business between 2016 and 2019. The misconduct involved over $23 million, with Oracle agreeing to pay approximately $8 million in disgorgement and a $15 million penalty. The company is charged with violating anti-bribery, books and records, and internal accounting controls provisions of the FCPA.
Oracle Corporation agreed to pay over $23 million to settle SEC charges that its subsidiaries in Turkey, UAE, and India used slush funds to bribe foreign officials between 2016 and 2019. The subsidiaries allegedly created off-book accounts to facilitate the bribery, which included paying for foreign officials and their families to attend technology conferences and take side trips to California. The misconduct involved illicit payments to officials and their families, and marked a repeat of prior misconduct dating back to a 2012 settlement involving Oracle India. Without admitting or denying the allegations, Oracle consented to a cease-and-desist order and paid $8 million in disgorgement and a $15 million penalty. The SEC highlighted the systemic failure of internal controls and commended cooperation from Turkish, UAE, and Indian regulators in the investigation. The SEC's investigation was conducted by Samantha Martin and Laura Bennett and supervised by David Reece.
Exhibits & Attached Documents (1)
Extracted insights
- $23.00M $23 million $10M–$100M
- $15.00M $15 million $10M–$100M
- $8.00M $8 million $1M–$10M
- person David Reece
- agency sec investigation
- agency Securities and Exchange Commission
- Securities and Exchange Commission Announced Settled Charges Requiring Oracle Corporation To Pay More Than $23 Million
- Oracle Subsidiaries In Turkey And UAE Used Slush Funds To Pay For Foreign Officials To Attend Technology Conferences
- Employees Of Turkey Subsidiary Used Funds For Officials’ Families To Accompany Them On International Conferences Or Take Side Trips To California
- Oracle Agreed To Cease And Desist From Committing Violations And To Pay Approximately $8 Million In Disgorgement And A $15 Million Penalty
- SEC Investigation Was Conducted By Samantha Martin And Laura Bennett
- SEC Investigation Supervised By David Reece
The Securities and Exchange Commission announced settled charges requiring Oracle Corporation to pay more than $23 million to resolve charges that it violated provisions of the Foreign Corrupt Practices Act (FCPA) when subsidiaries in Turkey, the United Arab Emirates (UAE), and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019. According to the SEC’s order, Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures. The order found that in some instances, employees of the Turkey subsidiary used these funds for the officials’ families to accompany them on international conferences or take side trips to California. The SEC previously sanctioned Oracle in connection with the creation of slush funds. In 2012, Oracle resolved charges relating to the creation of millions of dollars of side funds by Oracle India, which created the risk that those funds could be used for illicit purposes. “The creation of off-book slush funds inherently gives rise to the risk those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries,” said Charles Cain, the SEC’s FCPA Unit Chief. “This matter highlights the critical need for effective internal accounting controls throughout the entirety of a company’s operations.” Without admitting or denying the SEC’s findings, Oracle agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and to pay approximately $8 million in disgorgement and a $15 million penalty. The SEC’s investigation was conducted by Samantha Martin and Laura Bennett and supervised by David Reece. The SEC appreciates the assistance of the Capital Markets Board of Turkey, Emirates Securities and Commodities Authority, and the Securities and Exchange Board of India.
The Securities and Exchange Commission announced settled charges requiring Oracle Corporation to pay more than $23 million to resolve charges that it violated provisions of the Foreign Corrupt Practices Act (FCPA) when subsidiaries in Turkey, the United Arab Emirates (UAE), and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019. According to the SEC’s order, Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures. The order found that in some instances, employees of the Turkey subsidiary used these funds for the officials’ families to accompany them on international conferences or take side trips to California. The SEC previously sanctioned Oracle in connection with the creation of slush funds. In 2012, Oracle resolved charges relating to the creation of millions of dollars of side funds by Oracle India, which created the risk that those funds could be used for illicit purposes. “The creation of off-book slush funds inherently gives rise to the risk those funds will be used improperly, which is exactly what happened here at Oracle’s Turkey, UAE, and India subsidiaries,” said Charles Cain, the SEC’s FCPA Unit Chief. “This matter highlights the critical need for effective internal accounting controls throughout the entirety of a company’s operations.” Without admitting or denying the SEC’s findings, Oracle agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal accounting controls provisions of the FCPA and to pay approximately $8 million in disgorgement and a $15 million penalty. The SEC’s investigation was conducted by Samantha Martin and Laura Bennett and supervised by David Reece. The SEC appreciates the assistance of the Capital Markets Board of Turkey, Emirates Securities and Commodities Authority, and the Securities and Exchange Board of India.