Qualcomm Incorporated (NASDAQ: QCOM) today announced that it has entered into a settlement with the U.S. Securities and Exchange Commission (SEC) with respect to its Foreign Corrupt Practices Act (FCPA) investigation. Without admitting or denying the SEC’s findings, Qualcomm has agreed to pay a civil penalty of $7.5 million to resolve this matter. This is not a criminal action, and the U.S. Department of Justice recently closed its investigation on these matters without taking any action. The SEC’s order detailing this settlement relates to conduct prior to 2012 and completely resolves the investigation previously disclosed by the Company in its public filings.
The SEC order states that on certain occasions Qualcomm gave employees of state-owned entities or government agencies in China event tickets and gifts or paid for travel, and on certain occasions hired children or friends of employees of state-owned entities or ministries in China.
Qualcomm has always strived to comply with FCPA requirements. As a result of this experience,
Qualcomm has taken additional steps to enhance its existing internal controls and procedures. For example, although like most organizations Qualcomm appreciates referrals of job candidates by those who know the candidates well, the Company now closely monitors to determine if a candidate has any relationship with an employee of a government agency or state-owned entity, and applies a stricter standard of scrutiny in an effort to avoid potential FCPA risks in the future.
Pursuant to the terms of the settlement, Qualcomm will report periodically to the SEC on its efforts to maintain and enhance effective FCPA controls.
“Qualcomm is pleased to have put this matter behind us. We remain committed to ethical conduct and compliance with all laws and regulations, and will continue to be vigilant about FCPA compliance,” said Don Rosenberg, Executive Vice President and General Counsel of Qualcomm.
Qualcomm Incorporated (NASDAQ: QCOM) is a world leader in 3G, 4G and next-generation wireless technologies. Qualcomm Incorporated includes Qualcomm’s licensing business, QTL, and the vast majority of its patent portfolio. Qualcomm Technologies, Inc., a wholly-owned subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, substantially all of Qualcomm’s engineering, research and development functions, and substantially all of its products and services businesses, including its semiconductor business, QCT. For more than 30 years, Qualcomm ideas and inventions have driven the evolution of digital communications, linking people everywhere more closely to information, entertainment and each other. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.