Qualcomm faces China bribery probe

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.