Embattled Chinese technology company UTStarcom (UTSI) says it has reached a final settlement with the Securities and Exchange Commission in the United States regarding an investigation of the company's financial disclosures during prior reporting periods, and the CEO has managed to get away with hardly any punishment.

"We are pleased to conclude this investigation with the SEC as we have spent significant time and energy to resolve these historical matters," stated Fran Barton, chief financial officer of UTStarcom. "With these matters behind us we can now redirect our efforts towards realizing UTStarcom's technological advantages and growth opportunities."

Without admitting or denying the allegations in the SEC's complaint, the UTStarcom has agreed to settle the charges by consenting to a permanent injunction against any future violations of the reporting, books-and-records and internal control provisions of the federal securities laws. No monetary penalties were assessed against the company. This settlement with the SEC does not include the investigation of possible violations of the Foreign Corrupt Practices Act which is ongoing with the Department of Justice.

Hong Lu, the company's current CEO and a director of the company, also agreed to settle with the SEC without admitting or denying the allegations in the SEC's complaint, by paying a civil penalty of US$100,000 and consenting to a permanent injunction on similar terms as the company. Lu's settlement is subject to a final judgment by a United States District Court.

Related Links:

• http://www.miit.gov.cn

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