Telefônica Brasil resolves ‘World Cup hospitality’ FCPA offenses
The SEC Thursday fined Telefônica Brasil S.A. $4.125 million for providing soccer tickets and hospitality to government officials who could help the company’s business.
The SEC charged the company with violating the FCPA’s internal accounting controls and recordkeeping provisions.
The São Paulo-based telecom
spent $5.1 million to buy 2014 World Cup tickets and $428,000 for 2013 Confederations Cup tickets.
It booked the costs as “Publicity Institutional Events” and “Advertising & Publicity.”
World Cup tickets and hospitality went to 93 government officials and Confederations Cup tickets to 34 government officials, the SEC said. Brazil hosted both tournaments.
Telefônica Brasil —
a unit of Spain’s Telefónica, S.A. — provides services under the Vivo brand. It’s the biggest telecom operator in Brazil with about 34,000 employees and $14 billion in revenues.
first disclosed the FCPA investigation in February 2017. The company’s American Depositary Receipts are registered with the SEC and traded on the New York Stock Exchange under the symbol “VIV.”
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