SEC Fines Oracle $23M For Violations Of Foreign Corrupt Practices Act

SEC Fines Oracle $23M For Violations Of Foreign Corrupt Practices Act
  • The U.S. SEC disclosed settling charges requiring Oracle Corp ORCL to pay over $23 million for violating the Foreign Corrupt Practices Act (FCPA) provisions. 
  • Oracle's 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.
  • Oracle subsidiaries in Turkey and UAE also used the slush funds to pay for foreign officials to attend technology conferences in violation of company policies and procedures.
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  • The SEC previously sanctioned Oracle in connection with the creation of slush funds. In 2012, Oracle resolved charges relating to creating millions of dollars of side funds by Oracle India, posing a risk over its misuse 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," SEC's FCPA Unit Chief Charles Cain said.
  • Without admitting or denying the SEC's findings, Oracle agreed to cease 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.
  • Oracle held $11.2 billion in cash and equivalents as of August 31, 2022.
  • Price Action: ORCL shares traded higher by 0.13% at $63.53 on the last check Tuesday.
  • Photo Via Wikimedia Commons

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