The case covered alleged wrongdoing from 2014 to 2019, and
is the second time the SEC charged Oracle with violating the federal Foreign
Corrupt Practices Act (“FCPA“), an anti-bribery law.
According to the regulator, Oracle’s Turkey and UAE units
also used slush funds to pay for foreign officials to attend technology
conferences in violation of Oracle policies.
Employees of the Turkey unit also used the funds to pay for
the officials’ spouses and children to accompany them, or take side trips to
Los Angeles and Napa Valley, California, the SEC 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,” Charles Cain, chief of the SEC‘s FCPA unit, said in a statement.
Oracle, based in Austin, Texas, agreed to pay a $15 million
civil fine and about $7.9 million of disgorgement and interest. It did not
admit or deny wrongdoing in agreeing to settle.
“The conduct outlined by the SEC is contrary to our core
values and clear policies, and if we identify such behavior, we will take
appropriate action,” Oracle spokesman Michael Egbert said.
In 2012, Oracle agreed to pay a $2 million fine to settle
SEC charges concerning the creation of millions of dollars of unauthorized side
funds by Oracle India from 2005 to 2007.
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