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Spanish phone company subsidiary to pay $85M to resolve US probe of Venezuelan bribery scheme

A Venezuelan subsidiary of a Spanish phone company will pay more than $85 million to resolve a U.S. Justice Department investigation into a scheme to bribe Venezuelan government officials

Via AP news wire
Friday 08 November 2024 21:35

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A Venezuelan subsidiary of a Spanish phone company will pay more than $85 million to resolve a U.S. Justice Department investigation into a scheme to bribe Venezuelan government officials, the department said Friday.

Telefónica Venezolana, a subsidiary of Telefónica S.A., bribed Venezuelan officials to participate in an auction that allowed it to get U.S. dollars in exchange for Venezuelan bolivars, Justice Department officials said.

Telefónica Venezolana bought equipment at inflated prices from suppliers, who then paid the bribes on its behalf in an attempt to hide the illegal scheme, prosecutors said.

“Telefónica Venezolana chose to support a corrupt regime to circumvent the difficulties of conducting legal business in Venezuela," said Principal Deputy Assistant Attorney General Nicole Argentieri, who leads the Justice Department’s Criminal Division.

The subsidiary is charged in U.S. federal court with conspiracy to violate the Foreign Corrupt Practices Act but will avoid prosecution under an agreement with the Justice Department if it follows certain conditions.

Telefónica S.A. officials did not immediately respond to an email seeking comment Friday.

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