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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into IBM's Activities in Asia · International Business Machines Corporation

Information & Summary

Investigation into IBM's Activities in Asia

Related FCPA Matter:   IBM's Involvement in China and South Korea from 1998 to 2009 Information

Information & Summary

Investigation Name:    Investigation into IBM's Activities in Asia

Trend:    None

Type of investigation:    SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:   

  • Seoul District Prosecutor's Office

Whistleblower:    Unknown

Summary

International Business Machines Corporation ("IBM") is a New York corporation based in Armonk, New York. IBM develops and manufactures information technology products and services worldwide. IBM's common stock is traded on the NYSE.

As disclosed in IBM's April 26, 2011 10-Q filing, in January 2004, the Seoul District Prosecutors Office in South Korea announced it had brought criminal bid-rigging charges against several companies, including IBM subsidiaries, IBM Korea and LG IBM and had also charged employees of some of those entities with, among other things, bribery of certain officials of government-controlled entities in Korea and bid rigging. IBM Korea and LG IBM cooperated fully with authorities in these matters. A number of individuals, including former IBM Korea and LG IBM employees, were subsequently found guilty and sentenced. IBM Korea and LG IBM were also required to pay fines. Debarment orders were imposed at different times, covering a period of no more than a year from the date of issuance, which barred IBM Korea from doing business directly with certain government-controlled entities in Korea. In addition, the DOJ and SEC both contacted IBM in connection with this matter.

In March 2008, IBM received a request from the SEC for additional information.

In March 2011, IBM announced that it agreed to settle a civil enforcement action with the SEC relating to activities by employees of IBM Korea, LG IBM, IBM (China) Investment Company Limited and IBM Global Services (China) Co., Ltd., during the period from 1998 through 2009, allegedly in violation of the FCPA. As part of the settlement, IBM has consented to the entry of a judgment relating to the books and records and internal control provisions of the securities laws.

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