After the Securities and Exchange Commission accused IBM of bribing officials in Asian countries to secure government contracts over an 11-year period, the company agreed to pay a $10 million settlement.
The Wall Street Journal reports the SEC said 100 employees of IBM subsidiaries participated in a scandalous business dynamic in which the company held junkets filled with product giveaways for grateful Chinese government officials, who would send contracts the company’s way.
IBMers were allegedly a bit more blunt with South Korean officials, handing them shopping bags filled with cash. The payola is said to have led to millions of dollars in business contracts. The SEC said the actions violated the Foreign Corrupt Practices Act, which forbids bribing foreign officials.
The computer giant, which does not admit wrongdoing, said it’s taken “appropriate remedial action” against involved employees.