SEC Announces Clear Channel Outdoor Holdings Inc. Settles Corruption Charges with Over $26 Million Payment

The Securities and Exchange Commission (SEC) has charged Clear Channel Outdoor Holdings Inc. for paying more than $26 million to resolve allegations of bribing Chinese government officials in order to obtain outdoor advertising contracts in violation of the Foreign Corrupt Practices Act (FCPA). The SEC learned that from 2012 through 2017, Clear Media - a majority owned subsidiary of Clear Channel located in China - bribed Chinese government officials with gifts and entertainment and used off-book consultants to receive contracts from Chinese authorities. Despite warnings by internal auditors of insufficient accounting controls at Clear Media, Clear Channel failed to address the issue allowing improper payments to continue. As part of the settlement, Clear Channel received an order to cease and desist from future violations, pay disgorgement plus interest totaling approximately $20.1 million, and pay a $6 million civil penalty. Furthermore, the SEC acknowledges the assistance of the Hong Kong Securities and Futures Commission, the Stock Exchange of Hong Kong Limited, and the United Kingdom Financial Conduct Authority.