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Qualcomm, San Diego's giant cell-phone chip-maker, yesterday (April 23) revealed that the Securities and Exchange Commission has warned that it could face a civil action over alleged bribery in China. The company revealed the possibility when it released its second-quarter results.

According to Reuters, the Los Angeles office of the securities regulator advised the company of a preliminary determination to recommend an enforcement action against the company for violating the Foreign Corrupt Practices Act. Qualcomm said possible remedies include "disgorgement of profits, the retention of an independent compliance monitor to review the company's [Foreign Corrupt Practices Act] policies and practices, an injunction, civil monetary penalties and prejudgment interest."

Qualcomm opened an internal investigation of possible China bribes in 2012 and disclosed the matter to the securities agency.

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Comments

Ponzi April 24, 2014 @ 10:15 p.m.

There's a crime behind every fortune.

1

Don Bauder April 24, 2014 @ 10:22 p.m.

Ponzi: It was some great French writer who said that, or something quite similar. In this case, the SEC action, if it takes place, would be civil. Also, Foreign Corrupt Practices Act violations are, unfortunately, rather common. Best, Don Bauder

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MURPHYJUNK April 25, 2014 @ 7:48 a.m.

part of the real world surfaces. Its difficult ( using the Japanese interpretation of the word difficult ) to do business in asia without some tea money changing hands.

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Don Bauder April 25, 2014 @ 1:08 p.m.

Murphyjunk: Yes, and the same is true in other parts of the world such as Latin America and the Middle East. Go on the SEC website and click Foreign Corrupt Practices Act violations, and read how many blue chip companies have been nabbed. Best, Don Bauder

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