Wipro to pay US Securities and Exchange Commission $5 million to end embezzlement case
'The SEC has credited the company’s cooperation and remedial measures in arriving at the settlement,' a statement by the firm said.
Indian software services firm Wipro Limited will pay $5 million (approximately Rs 33.90 crore) to the United States Securities and Exchange Commission to end a six-year-old embezzlement case, Mint reported on Friday. In a statement sent to stock exchanges, Wipro said the settlement meant the company “neither admits nor denies the SEC’s allegations that the company violated certain provisions of the Securities Exchange Act of 1934”.
“The SEC has credited the company’s cooperation and remedial measures in arriving at the settlement,” the statement said. Under the terms of the agreement, the company will pay the amount, “desist from committing or causing violations” to the Securities Exchange Act and “undertake certain follow-through actions”.
“The company considers the settled resolution of this long-pending matter to be an efficient approach.” The case was registered in September 2010 after Wipro found that a junior employee of the company had embezzled $4 million (approximately Rs 27.14 crore). The company publicly admitted to the embezzlement and launched an internal and external investigation into the matter.