You are here: Home » Companies » News
Business Standard

US fines Cognizant $25 mn, charges two ex-executives in India bribery case

The two former executives were charged in a 12-count indictment with violating the federal Foreign Corrupt Practices Act and other offenses



U.S. authorities on Friday announced criminal charges against two former top Technology Solutions Corp executives for their roles in a scheme in India, and said the company will pay $25 million to settle a related civil case.

The U.S. Department of Justice said the former president, Gordon Coburn, and the former chief legal officer, Steven Schwartz, were charged in a 12-count indictment with violating the federal and other offenses.

According to the indictment, in 2014 Coburn and Schwartz allegedly authorized an unlawful payment of approximately $2 million to one or more government officials in India to secure and obtain a permit to build a new campus in the country.

Cognizant's payment to the U.S. government, which includes a $6 million fine and $19 million in disgorgement and interest, resolves related civil charges brought by the U.S. Securities and Exchange Commission. The information technology services company is based in Teaneck, New Jersey.

did not immediately respond to requests for comment. Lawyers for Coburn and Schwartz did not immediately respond to similar requests.

First Published: Fri, February 15 2019. 22:36 IST