Qualcomm has settled with the US Securities and Exchange Commission (SEC) over an investigation into possible violations of the Foreign Corrupt Practices Act. Without admitting or denying the SEC's findings, Qualcomm has agreed to pay a civil penalty of USD 7.5 million to resolve this matter. Qualcomm stressed that "this is not a criminal action", and the US Department of Justice also recently closed its investigation into the matter without taking any action.
The SEC's investigation centred on activities before 2012 in China, when Qualcomm gave employees of state-owned entities or government agencies event tickets and gifts or paid for travel, and on certain occasions hired children or friends of employees of state-owned entities or ministries in China. Qualcomm said it had stepped up its internal controls and looks more closely if a candidate has any relationship with an employee of a government agency or state-owned entity. As part of the terms of the settlement, Qualcomm will report periodically to the SEC on its efforts to maintain and enhance effective FCPA controls.
