Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-21470
Name of Prosecuting Attorneys:
Lesley B. Atkins, SEC Headquarters
M. Shahriar Masud, SEC Headquarters
Sonia Torrico, SEC Headquarters
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Voluntary disclosure
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Gartner, Inc. was a technological research and consulting company headquartered in Connecticut. Gartner operated through three primary business segments: Gartner Research, Gartner Consulting, and Gartner Conferences. Gartner's stock was registered with the SEC and traded on the New York Stock Exchange under the ticker symbol “IT.”
According to the documents in this case, between December 2014 and August 2015, Gartner used a private South African company with close ties to senior officials with the South African Revenue Service ("SARS") to obtain consulting contracts for the company. Gartner was directed to use the private company by the SARS officials, despite a manager of Gartner’s consulting segment knowing that all or part of the money paid to the private company would be paid to those SARS officials. The purported justification for hiring the private company was that it would allow Gartner to meet the requirements of South Africa’s Broad-Based Black Economic Empowerment legislation, but this justification was false because Gartner, through its local sub-agents, did in fact qualify under the legislation. In all, Gartner profited by $675,974 from the contracts it secured through the arrangement with the private company.
In a settled administrative proceeding initiated on May 26, 2023, the SEC ordered Gartner to cease and desist violation of the antibribery, books and records, and internal controls provisions of the FCPA. Under the terms of the settlement, Gartner agreed to pay disgorgement of $675,974 plus prejudgment interest of $180,790 and a civil fine of $1,600,000. The SEC noted Gartner's self-disclosure, cooperation, and remediation.
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