Telia Company AB was a corporation incorporated in Sweden, and it provided telecommunications services and operated through subsidiaries and affiliates in Europe and Asia. Prior to September 5, 2007, when its application to deregister its shares with the SEC became effective, Telia issued and maintained securities registered with the SEC and traded on the NASDAQ prior to 2005.
COSCOM LLC was a majority-owned subsidiary of Telia. The company was part of Telia's Eurasia business unit and provided telecommunications services in Uzbekistan.
Between approximately 2007 and 2010, Telia and its subsidiaries, including COSCOM, paid more than $330 million in bribes so that Telia could enter the Uzbek telecommunications market, gain valuable telecom assets, and continue operating in Uzbekistan. The bribes were paid to an Uzbek government official who was a family member of the then president of Uzbekistan and who exercised influence over Uzbek telecommunications industry regulators. The government official operated through a number of shell companies, including Takilant Ltd., which was also implicated in the FCPA enforcement actions against VimpelCom. In separate court filings two years ago, the DOJ identified Gulnara Karimova, the eldest daughter of the late Uzbek President Islam Karimov, as the government official.
In administrative proceeding on September 21, 2017, the SEC ordered Telia to cease and desist violating the anti-bribery and internal controls provisions of the FCPA. The SEC further ordered Telia to disgorge $457 million, which represented profits Telia gained through the bribery scheme. Of the $457 million, $208.5 million would be paid directly to the SEC, and the company could offset $40 million in forfeiture payments to the DOJ and $208.5 million in payments to the Swedish and Dutch authorities. The cease and desist order was part of a global resolution between Telia and the SEC, DOJ, Dutch and Swedish authorities. In all, Telia agreed to pay combined sanctions of more than $965 million, with at least $483 million going to US authorities, to resolve the matter.
In a related proceeding on September 21, 2017, the DOJ filed one count Informations against both Telia and Coscom in the Southern District of New York alleging conspiracy to violate the anti-bribery provisions of the FCPA. On the same date, Telia entered into a Deferred Prosecution Agreement with the DOJ, and Coscom pled guilty to conspiracy charge. Under the agreements, Telia agreed to pay total monetary penalties of $548,603,972 under the sentencing guidelines. Of that total, a criminal fine of $274,603,972 would be paid to the U.S., and $274 million of the total fine could be offset by criminal penalties to be paid to the Dutch authorities. Furthermore, of the amount earmarked for the U.S., Telia could further offset $40 million and a criminal fine of $500,000 it would be paying on behalf of Coscom in its plea deal. The company also agreed to continune to implement its enhanced compliance policies and procedures.
Press reports also indicate that at least three former Telia executives have been charged in Sweden in connection with this matter.
