Wipro to pay $5 million to close US probe

TIL Desk/Business/Mumbai-Software major Wipro said it had agreed to pay a civil penalty worth $5 million to the US Securities and Exchange Commission (SEC) to resolve a six-year investigation on account of embezzlement of funds by an employee.

 In a filing to the BSE, the company said while agreeing to a settlement, it neither admits nor denies the allegations made by SEC that Wipro violated certain provisions of the Securities Exchange Act of 1934.

‘Under the terms of the settlement, the company consents to pay a civil money penalty of $5 million to cease and desist from committing or causing violations of the Exchange Act and to undertake certain follow through action.

The company believes it is in its best interests and that of all its stakeholders to resolve this prolonged matter,’ the company said in the filing. Six years ago, the firm found an embezzlement of about $4 million (about Rs 20 crore/Rs 200 million) by an employee in the controllership division within the finance department.