Ericsson to Pay Over $1 Billion in Penalties for Violating the Foreign Corrupt Practices Act

Last week, the Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) announced that multinational telecommunications company Ericsson agreed to pay over $1 billion in penalties after violating the Foreign Corrupt Practices Act (FCPA).

The SEC alleged the Swedish-based company engaged in a large-scale bribery scheme that involved improper payments to government officials in multiple countries in exchange for lucrative state-owned telecommunications contracts.

The SEC’s complaint alleges that Ericsson violated the anti-bribery, books and records, and internal controls provisions of the Foreign Corrupt Practices Act, per the SEC’s complaint.

The Foreign Corrupt Practices Act allows for foreign nationals to file whistleblower claims in the U.S. and receive an award between 10 and 30 percent of the total amount recovered by the government if a successful enforcement action follows their disclosures.

International whistleblowers are crucial to the detection of large-scale corruption and fraud around the world. The SEC and DOJ rely on individuals who decide to anonymously and confidentially blow the whistle on violations of the FCPA.

The SEC Whistleblower Program allows foreign nationals to file allegations of corruption, bribery, and fraud anonymously. The qui tam lawyers at Kohn, Kohn & Colapinto currently represents foreign nationals from several countries before the SEC.

Read the SEC press release: SEC Charges Multinational Telecommunications Company with FCPA Violations

Read the DOJ press release: Ericsson Agrees to Pay Over $1 Billion to Resolve FCPA Case

Read the Frequently Asked Questions (FAQs): Foreign Corrupt Practices Act

Read more about International Whistleblowers