Indian IT major Wipro on Friday announced that it has reached an agreement with US Securities and Exchange Commission (SEC) to resolve a six-year old investigation related to the embezzlement of funds worth $4 million by an employee. Under the terms of the settlement, the company will pay penalty of $5 million.
This was disclosed by the Bengaluru-based IT major in a filing with the Bombay Stock Exchange.
Wipro said in a statement that "in agreeing to the settlement, the company neither admits nor denies the SEC's allegations that the company violated certain provisions of the Securities Exchange Act of 1934".
The matter relates to embezzlement of funds worth about $4 million by an employee which Wipro says it discovered in December 2009. Wipro said that it was able to substantially recover the embezzled funds and the company made appropriate disclosures in the matter. The US agency initiated an enquiry in September 2010.
Wipro said that upon discovery of the embezzlement, it immediately took several steps which included internal and external investigation, hiring of additional accounting and finance personnel and spotting the recommendations of auditors and consultants.
"The company believes that it is in its best interests and that of all the stakeholders to resolve the prolonged matter and has accordingly reached the settlement," Wipro said.
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