Lucent Technologies to Pay $1 Million Fine to Resolve FCPA Allegations

Lucent Technologies, a communications solutions provider, has entered an agreement with the Department of Justice and has agreed to pay a $1 million fine to resolve allegations that it has violated the Foreign Corrupt Practices Act.

According to the agreement, from at least 2000 to 2003, Lucent has spent millions of dollars on approximately 315 trips for Chinese government officials that included primarily sightseeing, entertainment and leisure. These trips were requested and approved with the consent and knowledge of the most senior Lucent Chinese officials and with the logistical and administrative assistance of Lucent employees in the US, including at corporate headquarters in Murray Hill, New Jersey.

In the agreement, Lucent admits to all of this conduct, as well as other instances of providing travel and educational opportunities to Chinese government officials and to the improper recording of those expenses in its corporate books and records. Lucent has agreed to pay a monetary penalty of $1 million to the US Treasury.

The agreement further requires Lucent to adopt new or modify existing internal controls, policies and procedures. Those enhanced internal controls must ensure that Lucent makes and keeps fair and accurate books, records and accounts, as well as a rigorous anti-corruption compliance code, standards and procedures designed to detect and deter violations of the Foreign Corrupt Practices Act (FCPA) and other applicable anti-corruption laws. The Justice Department has agreed not to prosecute Lucent if it complies with all of the requirements contained in the agreement over a two-year term.