ANTICORRUPTION DEVELOPMENTS
Former Magyar Telekom Executives Settle Bribery Charges
On April 24, 2017, the Securities and Exchange Commission (SEC) announced that two former executives of Magyar Telekom, a Hungarian telecommunications company, agreed to settle FCPA charges against them. The settlement comes just before the executives were scheduled to stand trial for FCPA charges first lodged against them in December 2011. The executives were accused of creating fake contracts to facilitate improper payments to foreign officials in Macedonia in order to shut out competitors in the market. Former Magyar CEO Elek Straub will pay a $250,000 penalty, while former Magyar Chief Strategy Officer Andras Balogh will pay a $150,000 penalty. Both men also agreed not to serve as officers or directors of any SECregistered public company for five years.
In February 2017, Tamas Morvai, a third former Magyar executive, who served as director of business development and acquisitions, also settled ahead of his anticipated trial. Morvai agreed to pay $60,000 to settle allegations that he falsified the company's books and records to conceal bribes.
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