Satyam Computer Services has made a $10 million settlement with the US Securities and Exchange Commission (SEC) over allegations of fraud.
Senior officials of the Indian company, which provides business consulting, IT and communications services, are accused of forging bank statements and using over 6,000 false invoices to make the company look more profitable to investors than it really was. The figures are believed to have been altered to the tune of $1 billion over a five-year period.
Once the fraud came to light in early 2009, the Indian government took control of Satyam and sacked its board of directors. It appointed new people to head up the company, who worked closely with SEC to resolve the outstanding fraud issues. The SEC accepted that the new leadership acted comprehensively to address its concerns.
In addition to the payment, Satyam must hire an independent consultant to evaluate internal controls, which the SEC said had suffered a massive “failure” in allowing such wide-scale fraud.
The company has also been ordered to train its staff on security and accounting laws, and improve its auditing abilities.
While this settlement ends the case for Satyam as a company, many of its former officials are still under investigation, with criminal proceedings filed against seven of them.
Thus far Satyam has neither admitted nor denied the allegations. Thinq_ contacted the company to see what it had to say, and will update this article if and when it responds.