Russian Telecommunications Company Settles FCPA Charges

A Russian telecommunications services company Mobile TeleSystems PJSC ("Mobile") agreed to settle SEC charges that it violated the anti-bribery, books and records, and internal accounting controls provisions of the Foreign Corrupt Practices Act ("FCPA").

Mobile was the third international telecommunications company to enter into a settlement with the SEC and DOJ for paying bribes to Ukrainian government officials. Mobile entered into a deferred prosecution agreement with DOJ, in which it agreed to pay a total criminal penalty of $850 million to the United States, including a $500,000 criminal fine and $40 million in criminal forfeiture that Mobile agreed to pay on behalf of KolorIt. Mobile also agreed to the imposition of an independent compliance monitor for a term of three years and to implement rigorous internal controls and cooperate fully with SDNY and DOJ's ongoing investigation, including as to investigation of several individuals.

In related proceedings, Mobile reached a civil settlement with the SEC. Under the terms of the agreement with the SEC, Mobile agreed to pay a $100 million civil penalty, which SDNY and DOJ agreed to credit toward the financial penalties imposed as part of their agreement with Mobile.

According to the SEC Order, Mobile offered and paid bribes to a government official in Uzbekistan with respect to its Uzbek...