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US SEC ends Cognizant bribery case that the Justice Department also abandoned
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US SEC ends Cognizant bribery case that the Justice Department also abandoned
Jul 15, 2025 2:36 PM

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.

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