July 15 (Reuters) - The U.S. Securities and Exchange
Commission ended a civil bribery case against two former
Cognizant Technology Solutions executives, after
President Donald Trump decided to stop enforcing a key
anti-corruption law.
In a filing in the Newark, New Jersey federal court, the SEC
said it dismissed claims against Gordon Coburn and Steven
Schwartz "in the exercise of its discretion and as a policy
matter," and not on the merits.
The dismissal followed the Department of Justice's April 3
decision to abandon a related criminal case against Coburn and
Schwartz.
James Loonam, a lawyer for Coburn, said he was very happy
with the dismissal. A lawyer for Schwartz did not immediately
respond to requests for comment.
U.S. authorities charged Coburn and Schwartz in February
2019 with authorizing a $2 million bribe to an Indian official
for helping to obtain a construction permit for a new Cognizant
office in Chennai.
The SEC accused Coburn and Schwartz of violating
anti-bribery, books and records, and internal accounting
controls provisions of federal securities laws.
Alina Habba, the acting U.S. attorney in New Jersey, said in
April the criminal case should end in light of Trump's executive
order pausing enforcement of the Foreign Corrupt Practices Act.
The FCPA prohibits companies that operate in the United
States from bribing foreign officials.
Trump has called it a "horrible law," and when signing his
executive order said ending enforcement would "mean a lot more
business for America."
Cognizant agreed in February 2019 to pay $25.2 million to
settle with the SEC. The regulator also accused the Teaneck, New
Jersey-based information technology and outsourcing company of
authorizing two additional bribes.