meaningful review. Substantially all the corrupt payments called for under the contractswere made without question.
Straub, Balogh, and Morvai caused the payments made under the shamcontracts to be falsely recorded
Magyar Telekom's books and records. The paymentswere recorded as fees for legitimate consulting and marketing services, when no suchbona fide services were provided, or intended, under the contracts. The false entries
Magyar Telekom' s books and records were consolidated into the books and records
itsparent company, Deutsche Telekom AG ("Deutsche Telekom"), which reports the results
Magyar Telekom's operations in its consolidated financial statements.
This Court has jurisdiction over this action pursuant to Sections
(e) and 27
the Securities Exchange Act
1934 (the "Exchange Act")
78u(d), 78u(e), and 78aa].
Venue in this District is proper pursuant to Section 27
the ExchangeAct because acts or transactions constituting federal securities law violations occurredwithin the Southern District
Defendants, directly or indirectly,made use
the mails and
the meansand instrumentalities
interstate commerce in furtherance
the acts, practices andcourses
business described herein.
At the time
the violations, Magyar Telekom and Deutsche Telekom'ssecurities were publicly traded through American Depository Receipts listed on the NewYork Stock Exchange and registered with the Commission pursuant to Section 12(b)
the Exchange Act
Magyar Telekom and Deutsche Telekom were