SEC slaps Oracle with $23m fine

SEC

The Securities and Exchange Commission (SEC) will require Oracle to pay $23m in fines due to foreign corruption charges.

According to the SEC, Oracle violated provisions of the Foreign Corrupt Practices Act when subsidiaries in Turkey, the UAE and India created and used slush funds to bribe foreign officials in return for business between 2016 and 2019.

Oracle’s subsidiaries in Turkey and the UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of Oracle policies and procedures.

The order also 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.

Oracle agreed to cease and desist from committing violations of the anti-bribery, books and records, and internal controls provisions of the FCPA and to pay approximately $8m in disgorgement and a $15m penalty.

SEC’s FCPA Unit Chief Charles Cain said, “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. This matter highlights the critical need for effective internal accounting controls throughout the entirety of a company’s operations.”

Copyright © 2022 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research

Investors

The following investor(s) were tagged in this article.