DOW JONES NEWSWIRES
The Securities and Exchange Commission said telecommunications
company Veraz Networks Inc. (VRAZ) will pay a $300,000 penalty
after it agreed to settle charges that it violated the Foreign
Corrupt Practices Act.
The alleged violations stemmed from improper payments that Veraz
made to foreign officials in China and Vietnam after the company
went public in 2007.
The SEC accused Veraz of hiring a consultant in China who in
2007 and 2008 gave gifts and offered improper payment, valued at a
total of about $40,000, to officials at a government-controlled
telecommunications company in an attempt to win business. A Veraz
supervisor who approved the gifts described them in a company email
as the "gift scheme."
The SEC also allegeed that a Veraz employee made improper
payments to the chief executive of a government-controlled
telecommunications company in Vietnam to win business in 2007 and
2008.
According to the SEC's complaint, Veraz failed to accurately
record the improper payments on its books and failed to maintain
effective internal controls to prevent such payments.
Veraz did not admit or deny the allegations, but it consented to
the penalty. Company representatives could not immediately be
reached for comment.
Shares of Veraz, which last month said it plans to merge with
privately held Dialogic Corp., were recently up a penny at 85
cents. The stock is down 10% this year.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com