Swedish telecoms equipment maker Ericsson has agreed to pay more than $1 billion to settle a corruption investigation, the U.S. Justice Department said Friday. The Justice Department said Ericsson reached a deferred prosecution agreement that admitted to conspiring with others between at least 2000 and 2016, violating the U.S. Foreign Corrupt Practices Act, participating in a scheme to bribe, falsify accounts, and failing to enforce reasonable internal accounting controls. Ericsson used a third bribe to bribe government officials to secure and maintain the company’s business. According to one of the complaints, Ericsson hired consultants to set up a bribery fund to transfer funds to third parties.
Photo courtesy of Ericsson.com
Ericsson’s settlement of more than $1 billion includes more than $520 million in criminal penalties, and another $540 million will be paid to the Securities and Exchange Commission over an incident. Geoffrey Berman, the U.S. Attorney for the Southern District of New York, said in a statement that Ericsson used “money to make ghosts” as a guideline for telecommunications, using bribes, bribes, gifts and corruption.
Ericsson has yet to comment, and the company has previously said it will raise $1.2 billion to settle the corruption investigation.