By Dean Seal
Oracle Corp. has agreed to pay $23 million to resolve allegations that it used slush funds to bribe foreign officials in return for business, the U.S. Securities and Exchange Commission said Tuesday.
Without admitting or denying the findings, Oracle will pay a $15 million fine and $8 million in disgorgement to settle claims that it violated the Foreign Corrupt Practices Act, the SEC said.
A spokesman for Oracle said of the settlement that "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."
The regulator had alleged that Oracle subsidiaries in Turkey, the United Arab Emirates and India created the slush funds between 2016 and 2019. In addition to bribery, the Turkey and U.A.E. subsidiaries also used the slush funds to send foreign officials to tech conferences, and in some cases, have their families accompany them to conferences or take side trips to California, according to the agency's order.
The SEC said this is the second time it has sanctioned Oracle over the alleged creation of slush funds.
The business-software giant resolved FCPA violation claims in 2012 over Oracle India's alleged use of $2.2 million in side funds to pay phony vendors. Oracle paid a $2 million fine to settle the SEC's allegations.
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(END) Dow Jones Newswires
September 27, 2022 10:31 ET (14:31 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.