BellSouth to Pay $150,000 in SEC Case
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BellSouth Corp. agreed to pay $150,000 to settle a Securities and Exchange Commission case charging the telecommunications company with improper accounting and other questionable business practices at two Latin American subsidiaries.
The commission’s complaint alleged that managers at BellSouth’s Venezuelan wireless subsidiary, Telcel, paid $10.8 million to six foreign companies and recorded the money as payments for legitimate business services when no services were provided.
Atlanta-based BellSouth, which owns 78% of Telcel, has been unable to determine what happened to the money.
The company did not admit wrongdoing in the settlement. BellSouth said it has tightened its internal controls and fired and disciplined several employees.
The other charge concerned a $60,000 payment to a lobbyist for Telefonia Celular, BellSouth’s wireless subsidiary in Nicaragua. The company was hoping for a change in Nicaraguan law allowing it to take a majority stake in Telefonia Celular.
BellSouth shares rose 35 cents to close at $38.91 on the New York Stock Exchange.
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