Technology conglomerate Cisco Systems said in a regulatory filing it is investigating allegations of a “self-enrichment scheme” involving former employees in China that also potentially includes violations of the Foreign Corrupt Practices Act (FCPA).
In a quarterly report filed Tuesday, Cisco Systems said some of those former employees are also “alleged to have made or directed payments from the funds they received to various third parties, including employees of state-owned enterprises,” which would be in violation of the FCPA. The company said it has “voluntarily disclosed this investigation to the Department of Justice and Securities and Exchange Commission” and added it takes such allegations “very seriously” and is providing results of its investigation to both agencies.
In 2014, Cisco Systems launched an internal investigation into potential violations of the FCPA at the request of the SEC and Department of Justice regarding “business activities of the company’s Russian operations and certain of the Commonwealth of Independent States, and by certain resellers of the company’s products in those countries.” That investigation concluded without any enforcement action being taken.
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