Processing your request


please wait...

Enforcement Action Dataset

 

Initiation Date:    09/13/2019  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    SEC Administrative Proceeding

Docket or Case Number:    3-19446

Name of Prosecuting Attorneys:   

  • Paul W. Sharratt, SEC Headquarters
  • Michael K. Catoe, SEC Headquarters
  • M. Shahriar Masud, SEC Headquarters
  • Robert I. Dodge, SEC Headquarters
  • John J. Bowers, SEC Headquarters

US Assisting Agencies:   

  • U.S. Department of Justice
  • Federal Bureau of Investigation

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:    Unknown

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Cognizant Technology Solutions Corporation was a New Jersey corporation whose common stock was registered with the SEC and traded on the NASDAQ. The majority of Cognizant’s operations in India were conducted through Cognizant Technology Solutions India Private Limited, the company's largest subsidiary.

Sridhar Thiruvengadam served as Cognizant’s chief operating officer from late 2013 until he was placed on administrative leave in late 2016. Thiruvengadam resigned in late 2018.

According to the documents in this case, between 2014 and 2016, Thiruvengadam along with three other Cognizant executives, including Gordon J. Coburn and Steven E. Schwartz, schemed to authorize the payment of a $2 million bribe on behalf of the company to an Indian government official. The official demanded the bribe in connection with the issuance of a planning permit that was necessary for the construction of a commercial office facility in Chennai, India. Cognizant’s books and records were subsequently falsified in order to conceal the nature of the payment, and Thiruvengadam contributed to the concealment by signing false subcertifications to the company’s management representation letters.

In a settled administrative proceeding initiated on September 13, 2019, the SEC ordered Thiruvengadam to cease and desist violations of the books and records and internal controls provisions of the FCPA as well as violations of Exchange Act Rule 13b2-2 requiring accurate statements in management letters. Under the terms of the settlement, the SEC also ordered Thiruvengadam to pay a civil penalty of $50,000, which the SEC noted was not greater due to Thiruvengadam's cooperation.

The SEC also issued a cease and desist order against Cognizant on February 15, 2019. Under the terms of that proceeding, Cognizant agreed to pay disgorgement of $16,394,351 plus prejudgment interest of $2,773,017 and a civil fine of $6 million.

In two related cases filed on the same day as the administrative proceeding against Cognizant, the SEC filed a civil complaint and the DOJ filed an indictment against Coburn and Schwartz for FCPA violations. Both of those cases are ongoing.

On February 13, 2019, the DOJ formally declined to prosecute Cognizant pursuant to the agency's FCPA Corporate Enforcement Policy.

Protected Content


Please Log In or Sign Up for a free account to access restricted features of the Clearinghouse website, including the Advanced Search form and the full case pages.

When you sign up, you will have the option to save your search queries performed on the Advanced Search form.