Ericsson Says SEC Opened Investigation Into ISIS Bribery Scandal in Iraq
The Securities and Exchange Commission launched an investigation into Swedish telecommunications giant Ericsson's conduct in Iraq in 2019, the company said in a June 9 filing. The SEC told Ericsson it "has opened an investigation concerning the matters described in the company's 2019 Iraq investigation report." Ericsson responded that while "it is too early to determine or predict the outcome of the investigation," the company is "fully cooperating with the SEC."
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In February, a new round of allegations emerged over Ericsson's dealings in Iraq. The company admitted that it may have bribed the terror organization ISIS to get access to transport routes with payments dating back to 2011. Ericsson's June filing, though, didn't provide details on the nature of the investigation.
Ericsson is also dealing with a DOJ accusation that the company breached the terms of its 2019 deferred prosecution agreement by failing to disclose information from its internal investigation into alleged misconduct in Iraq (see 2203040034). The DPA was reached in December 2019 after one of Ericsson's employees was charged in a Foreign Corrupt Practices Act case with helping to bribe government officials in Djibouti to win a contract valued at around $24 million.