VimpelCom Ltd., a Bermuda corporation headquartered in Moscow, Russia until 2010, then Amsterdam, the Netherlands afterward, was a global provider of telecommunications services. VimpelCom operated through subsidiaries and affiliates in Europe, Asia, and Africa. VimpelCom managed its operations through separate regional business units, which were each overseen by an officer of VimpelCom and member of the senior management group. VimpelCom issued a class of publicly traded securities registered with the SEC, which were traded on the New York Stock Exchange prior to September 2013 and traded on the NASDAQ thereafter.
Unitel LLC was VimpelCom's wholly-owned subsidiary that provided mobile telecommunications services in Uzbekistan. Unitel was formed in Uzbekistan, and it was purchased by VimpelCom in 2006, along with Bakrie Uzbekistan Telecom ("Buztel"), when VimpelCom wanted to enter the Uzbek telecommunications market. Pre-acquisition Unitel and Buztel were merged into a single wholly-owned subsidiary called Unitel that was held by two VimpelCom holding companies, Freevale Enterprises and Silkway Holding BV. Unitel was part of VimpelCom's Commonwealth of Independent States ("CIS") business unit and was managed by local managers as well as a supervisory committee which included senior members of the CIS business unit management.
From 2006 to at least 2012, VimpelCom offered and paid bribes through Unitel to a government official in Uzbekistan in connection with its Uzbek operations. During the course of the bribery scheme, VimpelCom made or caused to be made at least $114 million in improper payments in order to obtain and retain business that generated more than $2.5 billion in revenues for VimpelCom. These payments were primarily made through sham contracts, but were also, in certain instances, made under the guise of legitimate charitable contributions or sponsorships. These payments were improperly characterized in the books of records of VimpelCom's subsidiaries as legitimate expenses, and consolidated in VimpelCom's financial statements which were filed with the Commission throughout the relevant period.
On February 18, 2016, the SEC filed a complaint in the Southern District of New York against VimpelCom alleging violations of the anti-bribery, books & records, and internal controls provisions of the FCPA. On February 22, 2016, the court entered final judgment against VimpelCom based on a consent agreement signed by the company and the SEC. Under the terms of the agreement, VimpelCom was enjoined from future violations of the FCPA and agreed to pay disgorgement of $375 million and to hire an independent monitor for a term of three years to report on the implementation of the company's anti-corruption compliance polices and procedures. Part of the $375 million disgorgement was deemed to be satisfied by the forfeiture payment of $167.5 million to the Public Prosecutor of the Netherlands and the forfeiture payment of $40 million to the DOJ.
