UTStarcom, Inc. ("UTS") was a Delaware corporation headquartered in Alameda, California. UTS's common stock was registered with the SEC and traded on the NASDAQ. UTS was a global telecommunications company that designed, manufactured and sold network equipment and handsets.
As disclosed in its SEC filings, on September 2005, UTS received notice of a formal inquiry by the staff of the SEC into certain aspects of the company's financial disclosures during prior reporting periods and certain other issues. In addition, in December 2005, the U.S. Embassy in Mongolia informed UTS that the Embassy had forwarded to the DOJ allegations that an agent of the company's Mongolia joint venture had offered payments to a Mongolian government official in possible violation of the FCPA. UTS, through its Audit Committee, authorized an independent investigation into possible violations of the FCPA, and contacted the DOJ and SEC regarding the investigation. The investigation identified possible FCPA violations in Mongolia, Southeast Asia, India, and China, as well as possible violations of U.S. immigration laws. The DOJ requested that UTS voluntarily produce documents related to the investigation, the SEC subpoenaed the company for documents, and UTS received a Grand Jury Subpoena requiring the production of documents related to one aspect of the DOJ investigation, that is, training programs that UTS had sponsored. UTS executed tolling agreements extending the statute of limitations for the FCPA issues under investigation by the DOJ and SEC.
According to its March 15, 2010 10-K, on December 21, 2009, UTS resolved the investigations with the DOJ by entering into a non-prosecution agreement, and with the SEC agreeing to a fine and reporting requirements.
