Cisco Discloses Possible Illegal Payment Scheme by Chinese Employees
U.S. technology company Cisco Systems is investigating whether its employees in China were involved in a “self-enrichment scheme” that included payments to state-owned entities, it said in a Feb. 16 Securities and Exchange Commission filing. Cisco said those employees, who…
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no longer work for the company, may have “made or directed payments from the funds they received to various third parties,” including employees of state-controlled companies. Cisco said it disclosed the potential violations to the Justice Department. “While the outcome of our investigation is currently not determinable, we do not expect that it will have a material adverse effect on our consolidated financial position, results of operations, or cash flows,” the company said. The Justice Department didn't comment.