Reuters: Regulatory News: UPDATE 1-FalconStor to pay $5.8 mln to settle bribe charges

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

UPDATE 1-FalconStor to pay $5.8 mln to settle bribe charges Jun 27th 2012, 19:47 Wed Jun 27, 2012 3:47pm EDT By Jessica Dye NEW YORK, June 27 (Reuters) - FalconStor Software Inc will pay a combined $5.8 million to resolve criminal and civil charges that it bribed JP Morgan Chase Bank NA executives to obtain $12 million in software contracts, federal prosecutors said on Wednesday. According to a criminal complaint filed in Brooklyn federal court, FalconStor offered more than $300,000 in restricted FalconStor shares, stock options, gambling vouchers, gift cards and golf perks to JP Morgan executives in Columbus, Ohio, in exchange for $12.2 million in software contracts. Long Island, New York-based FalconStor has entered into a deferred prosecution agreement with the U.S. attorney's office in Brooklyn, in addition to forfeiting $2.9 million, the office said. As part of the agreement, FalconStor will make several corporate governance reforms, including splitting the roles of chief executive officer and chairman of the board of directors and revising its gift policies. Pursuant to the agreement, the U.S. government will defer prosecution of FalconStor for 18 months. If FalconStor complies with the deal, the criminal charges will be dismissed, federal prosecutors said. "We are happy we were able to cooperate with the authorities and reach a settlement to put this behind us," said FalconStor CEO James McNeil. McNeil said the three FalconStor employees involved in the investigation have left the company. One of them is former FalconStor CEO Reijane Huai, who resigned from the company amid an internal investigation into improper payments. He was found dead of an apparent suicide in September. The U.S. Securities and Exchange Commission filed parallel civil charges against FalconStor on Wednesday. FalconStor agreed to pay $2.9 million in civil penalties to settle those charges. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions