Oracle paying $2 million to settle SEC charges on India

Software maker Oracle Corp is agreeing to pay USD 2 million to settle federal civil charges of failing to prevent secret payments in its sales operations in India.

Last Updated: Aug 17, 2012, 09:02 AM IST

Washington: Software maker Oracle Corp is agreeing to pay USD 2 million to settle federal civil charges of failing to prevent secret payments in its sales operations in India.

The Securities and Exchange Commission announced the settlement on Thursday. The SEC said Oracle violated the Foreign Corrupt Practices Act by allowing its Indian subsidiary to secretly set aside money that went to phony local vendors.

Oracle ran the risk of the secret funds being used for bribes, the SEC said.

The agency said the violations occurred from 2005 to 2007. It said the subsidiary sold software licenses and services to the Indian government and kept some of the sale proceeds off Oracle's books.

Oracle, based in Redwood Shores, California, neither admitted nor denied wrongdoing in the settlement.

PTI