The U.S. Securities and Exchange Commission (SEC) has concluded its civil bribery case against former Cognizant Technology Solutions executives Gordon Coburn and Steven Schwartz. This decision follows the Department of Justice’s (DOJ) earlier move to dismiss related criminal charges, aligning with President Donald Trump’s executive order that paused enforcement of the Foreign Corrupt Practices Act (FCPA).
In a recent filing in the Newark, New Jersey federal court, the SEC stated it dismissed claims against Coburn and Schwartz “in the exercise of its discretion and as a policy matter,” without addressing the merits of the case. This action mirrors the DOJ’s April 3 decision to abandon the criminal case against the two executives. ([wiky.com](https://wiky.com/2025/07/15/us-sec-ends-cognizant-bribery-case-that-the-justice-department-also-abandoned/?utm_source=openai))
The allegations, dating back to February 2019, accused Coburn and Schwartz of authorizing a $2 million bribe to an Indian official to expedite a construction permit for a new Cognizant office in Chennai. Both executives pleaded not guilty to these charges. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2019-12?utm_source=openai))
In response to the SEC’s dismissal, James Loonam, representing Coburn, expressed satisfaction with the outcome. A representative for Schwartz did not immediately provide a comment. ([wiky.com](https://wiky.com/2025/07/15/us-sec-ends-cognizant-bribery-case-that-the-justice-department-also-abandoned/?utm_source=openai))
President Trump’s executive order, issued in March, suspended enforcement of the FCPA, a law enacted in 1977 to prevent U.S. companies from bribing foreign officials. The President has criticized the FCPA, describing it as a “horrible law” and suggesting that ending its enforcement would “mean a lot more business for America.” ([wiky.com](https://wiky.com/2025/07/15/us-sec-ends-cognizant-bribery-case-that-the-justice-department-also-abandoned/?utm_source=openai))
Prior to these developments, Cognizant had agreed in February 2019 to pay $25.2 million to settle with the SEC over related allegations, which included authorizing additional bribes totaling $1.64 million. ([sec.gov](https://www.sec.gov/newsroom/press-releases/2019-12?utm_source=openai))
These dismissals highlight the evolving landscape of FCPA enforcement under the current administration, raising questions about the future of anti-bribery regulations and corporate compliance expectations.