IT is not controversial to state that Microsoft is disliked for being a serial and chronic criminal, not just maker of shoddy products (which sometimes require crimes to actually sell). There's ample evidence and long history of that, with more SEC complaints in the pipeline about additional crimes.
Microsoft Corporation paid the DOJ and SEC $25.3 million Monday to settle FCPA offenses related to its operations in Hungary, Saudi Arabia, Thailand, and Turkey.
A Microsoft subsidiary in Hungary called Microsoft Magyarorszag Kft. paid a criminal penalty of $8.75 million and entered into a three-year non-prosecution agreement with the DOJ.
Redmond, Washington-based Microsoft Corporation also disgorged $13.78 million to the SEC, plus prejudgment interest of $2.78 million.
Microsoft first disclosed the FCPA-related investigation in an SEC filing in July 2016, according to data from FCPA Tracker.
The SEC said Microsoft took remedial action and cooperated in the investigation. The company strengthened its internal accounting controls and compliance programs, took disciplinary action against four Microsoft Hungary employees, terminated four Hungarian licensing partners, and began using data analytics to help identify high-risk transactions, among other things.
In an internal administrative order (pdf), the SEC charged Microsoft Corporation with violating the FCPA’s books and records and internal accounting controls provisions.
In Hungary, Microsoft’s subsidiary won $13.7 million in business through “improper payments,” the SEC said.
From at least 2013 through 2015, the Hungary subsidiary paid government officials “through third party vendors, consultants, distributors and resellers, including in circumstances where there was no evidence of any services provided by the third parties.”
“Improper payments were also funded through excessive discounts that Microsoft’s senior executives in Hungary approved based on vague justifications without ensuring they were passed on to the end government customers,” the SEC said.