U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19356 / September 1, 2005
Securities and Exchange Commission v. Yaw Osei Amoako, Civil Action No. 05-4284 (GEB) (D.N.J.)
SEC SUES FORMER REGIONAL DIRECTOR OF ITXC CORP. FOR VIOLATIONS OF THE ANTI-BRIBERY PROVISIONS OF THE FOREIGN CORRUPT PRACTICES ACT
On September 1, 2005, the Securities and Exchange Commission filed a civil enforcement action in the U.S. District Court for the District of New Jersey against Yaw Osei Amoako, the former Regional Director for Africa of ITXC Corp. ("ITXC"), alleging that he violated the anti-bribery provisions of the Foreign Corrupt Practices Act of 1997 ("FCPA"), as amended, which is codified as Section 30A of the Securities Exchange Act of 1934.
The Commission's complaint alleges that Amoako bribed a senior official of the government-owned telephone company in Nigeria, known as Nigerian Telecommunications Ltd. ("Nitel"), in order to obtain a lucrative contract for ITXC. The contract was necessary for ITXC to be able to transmit telephone calls to individuals and businesses in Nigeria. According to the complaint, Amoako paid the Nitel official a total of $166,541.31 in bribes between November 2002 and May 2004, and ITXC made $1,136,618 in net profits from the contract. In 2004, ITXC merged with Teleglobe International Holdings Ltd.
The Commission seeks to have the Court enjoin Amoako from any future violations of the FCPA, require him to disgorge all ill-gotten gains derived from his misconduct, and order him to pay a civil money penalty.
The Commission's investigation is continuing.