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Harry Cassin
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Bloomberg: SEC Sues Deutsche Telekom, Magyar, And Three Execs

[Editor’s note: This post was updated here.]

Thom Weidlich of Bloomberg has just reported from federal court in Manhattan that the SEC has filed a civil suit againt Deutsche Telekom AG and its Magyar Telekom unit for FCPA offenses.

The SEC also sued three former Magyar employees — CEO Elek Straub, Andras Balogh, and Tamas Morvai, Bloomberg said.

The ‘court filing doesn’t indicate whether a settlement has been reached’ and the SEC and Deutsche Telekom had no comment, according to Bloomberg.

The SEC hasn’t released any information yet. When it does, we’ll post it.

In June, Hungary’s Magyar Telekom said it had reserved about $62 million for an expected settlement of FCPA-related charges with the SEC.

The company’s internal investigation found potentially illegal payments of about $44 million by its Montenegrin or Macedonian units.

Magyar Telekom — Hungary’s largest telecommunications firm — is a consolidated subsidiary of Germany’s Deutsche Telekom.

“The Company, without admitting or denying the allegations against it, would consent to a U.S. court order permanently enjoining it from any future FCPA violations and to the payment by the Company of disgorgement and a conditional civil penalty,” Magyar’s statement said.

The company said it is still trying to resolve the case with the DOJ.

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