Microsoft pays $25 million to settle corruption charges

Microsoft is paying more than $25 million to settle federal corruption charges involving a bribery scheme in Hungary and or foreign offices.

U.S. Securities and Exchange Commission said Microsoft will pay about $16.6 million to settle charges that it violated Foreign Corrupt Practices Act. While case centered on Hungary, SEC said it also found improprieties at Microsoft offices in Saudi Arabia, Thailand and Turkey.

Justice Department said Microsoft will also pay an $8.75 million criminal fine stemming from Hungarian bid-rigging and bribery scheme.

READ | Hackers Reportedly Compromised Certain Microsoft Outlook Email Accounts Over A Long Period Of Time, Be Vigilant At Least w

Federal prosecutors said that from 2013 through 2015, a senior executive and or employees at Hungary office took part in a scheme to “inflate margins in Microsoft sales channel” in connection with Microsoft software licenses sold to Hungarian government ncies.

Savings were falsely recorded as discounts and used for corrupt purposes, prosecutors said.

Microsoft President Brad Smith said in a letter to employees on July 22 that misconduct was “completely unacceptable” and involved a small number of employees.

Smith outlined changes to prevent public sector discounts from being used improperly and said company is expanding its use of artificial intelligence to flag suspicious transactions.

READ | Microsoft Co-founder Bill Gates Edged To 3rd Richest Person In World By Rising Bernard Arnault, Numbers Here