The U.S. Security Exchange Commission (SEC) has said UTStarcom Inc., a US telecom company, made improper payments to “sham consultants” in China and Mongolia while knowing they would pay bribes to Government officials, according to an AFP report.

“UTStarcom spent millions of dollars on illegal bribes to win and keep customers in Asia,” the SEC said in a statement. “It is important for corporate America to recognize that resorting to these methods of boosting profits contributes to a culture of corruption that cannot be condoned under U.S. law.”

Following an investigation, UTStarcom has agreed to pay USD3 million in fines for bribing Chinese officials with Hawaiian vacations and other junkets.