UTStarcom Discloses FCPA Investigations
UTStarcom, a manufacturer networking and telecommunications products, stated in its 2005 annual report (10-K) that was recently filed with the Securities and Exchange Commission (SEC) that the company has received notice of a formal inquiry by the staff of the SEC relating to a possible violation of the Foreign Corrupt Practices Act. Specifically, the investigation relates to allegations that an agent of UTStarcom's Mongolia joint venture had offered payments to a Mongolian government official. In addition, the company stated that in April 2006 the company also became aware that an agent for UTStarcom may have made an offer to pay an Indian government official in possible violation of the FCPA and that the company has "been in contact with the DOJ and SEC regarding the investigation" into such payment.
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