VimpelCom to Pay $795 Million in Global Settlement for FCPA Violations
VimpelCom Ltd. paid over $114 million in bribes to a high-ranking Uzbek official linked to the President, disguised as charitable donations and sham contracts, to secure telecom licenses, resulting in a $795 million global settlement with the SEC, DOJ, and Dutch regulators, including a three-year corporate monitor requirement.
VimpelCom Ltd. violated the Foreign Corrupt Practices Act by paying at least $114 million in bribes to a Uzbek government official connected to the President, plus an additional $500,000 disguised as charitable donations to entities tied to the official, to obtain telecom licenses and spectrum rights. The company falsified its books and records to conceal these payments, leading to a coordinated global settlement with the SEC, U.S. Department of Justice, and Dutch regulators totaling $795 million—$167.5 million to the SEC, $230.1 million to the DOJ, and $397.5 million to Dutch authorities. VimpelCom consented to a court order permanently enjoining future FCPA violations and agreed to retain an independent corporate monitor for at least three years.
VimpelCom Ltd. engaged in a widespread bribery scheme to secure telecommunications licenses, frequencies, and number blocks in Uzbekistan by paying at least $114 million to a high-ranking government official linked to the President, with an additional $500,000 disguised as charitable donations to entities controlled by the official. The company systematically falsified its books and records to conceal these illicit payments, violating Sections 30A and 13(b)(2)(A)/(B) of the Securities Exchange Act of 1934. In a landmark global settlement, VimpelCom agreed to pay $795 million in penalties—$167.5 million to the SEC, $230.1 million to the U.S. Department of Justice, and $397.5 million to Dutch regulators—without admitting or denying guilt. The company also consented to a court order permanently enjoining it from future FCPA violations and must retain an independent corporate monitor for at least three years. The resolution was the result of unprecedented international cooperation involving regulators from the U.S., Netherlands, Norway, Sweden, Switzerland, Latvia, Spain, and others, as well as financial authorities in the British Virgin Islands, Cayman Islands, Bermuda, Ireland, Estonia, UAE, Marshall Islands, and Gibraltar. The SEC’s Enforcement Division emphasized that these 'old-fashioned bribes' were hidden through sham contracts and charitable fronts, leaving the company’s financial records riddled with inaccuracies. This case underscores the growing global enforcement of anti-bribery laws and the critical role of cross-border collaboration in holding multinational corporations accountable.
Exhibits & Attached Documents (1)
Extracted insights
- $795.00M $795 million $100M–$1B
- $397.50M $397.5 million $100M–$1B
- $230.10M $230.1 million $100M–$1B
- $167.50M $167.5 million $100M–$1B
- $114.00M $114 million $100M–$1B
- $100.00M $100 million $100M–$1B
- agency $167.5 million to sec
- agency $230.1 million to doj
- person bribe payments
- court complaint in u.s. district court
- person fcpa unit
- person global settlement
- person independent corporate monitor
- agency sec investigation
- agency Securities and Exchange Commission
- company vimpelcom ltd.
- SEC Announced Global Settlement
- Settlement Requires VimpelCom Ltd. to Pay $795 Million
- VimpelCom Ltd. Violated FCPA
- SEC Alleges VimpelCom Offered and Paid Bribes
- VimpelCom Paid Bribes to Uzbek Government Official
- Bribe Payments Were Funneled Through Entity Affiliated with Uzbek Official
- VimpelCom Made Massive Revenues in Uzbekistan
- VimpelCom Paid $167.5 Million to SEC
- VimpelCom Paid $230.1 Million to DOJ
- VimpelCom Paid $397.5 Million to Dutch Regulators
- VimpelCom Must Retain Independent Corporate Monitor
- SEC Filed Complaint in U.S. District Court
- VimpelCom Consented to Court Order
- FCPA Unit Conducts SEC Investigation
The Securities and Exchange Commission today announced a global settlement along with the U.S. Department of Justice and Dutch regulators that requires telecommunications provider VimpelCom Ltd. to pay more than $795 million to resolve its violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. The SEC alleges that VimpelCom offered and paid bribes to an Uzbek government official related to the President of Uzbekistan as the company entered the Uzbek telecommunications market and sought government-issued licenses, frequencies, channels, and number blocks. At least $114 million in bribe payments were funneled through an entity affiliated with the Uzbek official, and approximately a half-million dollars in bribes were disguised as charitable donations made to charities directly affiliated with the Uzbek official. “VimpelCom made massive revenues in Uzbekistan by paying over $100 million to an official with significant influence over top leaders of the Uzbek government,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “These old-fashioned bribes, hidden through sham contracts and charitable contributions, left the company’s books and records riddled with inaccuracies.” The settlement requires VimpelCom to pay $167.5 million to the SEC, $230.1 million to the U.S. Department of Justice, and $397.5 million to Dutch regulators. The company must retain an independent corporate monitor for at least three years. “International cooperation among regulators is critical to holding companies responsible for all facets of a bribery scheme. This closely coordinated settlement is a product of the extraordinary efforts of the SEC, Department of Justice, and law enforcement partners around the globe to jointly pursue those who break the law to win business,” said Kara N. Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s complaint was filed in U.S. District Court for the Southern District of New York. VimpelCom consented to the entry of a court order ordering the company to pay disgorgement and retain an independent monitor, and permanently enjoining the company from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The SEC’s continuing investigation is being conducted by the FCPA Unit under the supervision of its Deputy Chief Charles Cain. The SEC appreciates the significant assistance of the Department of Justice’s Criminal Division, Fraud and Asset Forfeiture Money Laundering Sections as well as the following agencies: Internal Revenue Service, Department of Homeland Security, Public Prosecution Service of the Netherlands (Openbaar Ministrie), National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (ØKOKRIM), Swedish Prosecution Authority, Office of the Attorney General in Switzerland, and Corruption Prevention and Combating Bureau in Latvia. Other valuable assistance was provided by the British Virgin Islands Financial Services Commission, Caymans Islands Monetary Authority, Bermuda Monetary Authority, and Central Bank of Ireland, Estonia Financial Supervisory Authority (Finantsinspektioon), Comisión Nacional del Mercado de Valores (Spain), Latvian Financial and Capital Market Commission, UAE Securities and Commodities Authority, Banking Commission of the Marshall Islands, and Gibraltar Financial Services Commission.
The Securities and Exchange Commission today announced a global settlement along with the U.S. Department of Justice and Dutch regulators that requires telecommunications provider VimpelCom Ltd. to pay more than $795 million to resolve its violations of the Foreign Corrupt Practices Act (FCPA) to win business in Uzbekistan. The SEC alleges that VimpelCom offered and paid bribes to an Uzbek government official related to the President of Uzbekistan as the company entered the Uzbek telecommunications market and sought government-issued licenses, frequencies, channels, and number blocks. At least $114 million in bribe payments were funneled through an entity affiliated with the Uzbek official, and approximately a half-million dollars in bribes were disguised as charitable donations made to charities directly affiliated with the Uzbek official. “VimpelCom made massive revenues in Uzbekistan by paying over $100 million to an official with significant influence over top leaders of the Uzbek government,” said Andrew J. Ceresney, Director of the SEC Enforcement Division. “These old-fashioned bribes, hidden through sham contracts and charitable contributions, left the company’s books and records riddled with inaccuracies.” The settlement requires VimpelCom to pay $167.5 million to the SEC, $230.1 million to the U.S. Department of Justice, and $397.5 million to Dutch regulators. The company must retain an independent corporate monitor for at least three years. “International cooperation among regulators is critical to holding companies responsible for all facets of a bribery scheme. This closely coordinated settlement is a product of the extraordinary efforts of the SEC, Department of Justice, and law enforcement partners around the globe to jointly pursue those who break the law to win business,” said Kara N. Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit. The SEC’s complaint was filed in U.S. District Court for the Southern District of New York. VimpelCom consented to the entry of a court order ordering the company to pay disgorgement and retain an independent monitor, and permanently enjoining the company from future violations of Sections 30A, 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934. The SEC’s continuing investigation is being conducted by the FCPA Unit under the supervision of its Deputy Chief Charles Cain. The SEC appreciates the significant assistance of the Department of Justice’s Criminal Division, Fraud and Asset Forfeiture Money Laundering Sections as well as the following agencies: Internal Revenue Service, Department of Homeland Security, Public Prosecution Service of the Netherlands (Openbaar Ministrie), National Authority for Investigation and Prosecution of Economic and Environmental Crime in Norway (ØKOKRIM), Swedish Prosecution Authority, Office of the Attorney General in Switzerland, and Corruption Prevention and Combating Bureau in Latvia. Other valuable assistance was provided by the British Virgin Islands Financial Services Commission, Caymans Islands Monetary Authority, Bermuda Monetary Authority, and Central Bank of Ireland, Estonia Financial Supervisory Authority (Finantsinspektioon), Comisión Nacional del Mercado de Valores (Spain), Latvian Financial and Capital Market Commission, UAE Securities and Commodities Authority, Banking Commission of the Marshall Islands, and Gibraltar Financial Services Commission.