Qualcomm Settles Securities And Exchange Commission Charges Without Admission Of Wrongdoing

On March 1, 2016, Qualcomm, Inc. agreed to settle allegations by the Securities and Exchange Commission (SEC) that the company hired relatives of Chinese government officials in exchange for winning business, and provided gifts, travel and entertainment to influence officials responsible for awarding contracts at government-owned telecommunication companies. According to the SEC, Qualcomm lacked the required internal controls to prevent the misrepresentations in the company's books and records that fraudulently portrayed these exchanges as legitimate business expenses. Qualcomm agreed to pay the $7.5 million without admitting or denying the SEC's findings. The company also agreed to provide the SEC with annual reports and certifications of its FCPA compliance for the next two years. Read more at StreetInsider and Forbes.