Alcatel-Lucent has agreed to pay $2.5 million in fines to resolve allegations that it provided Chinese government officials with free trips to Disneyland and other tourist attractions.

The company has to pay $1 million to resolve U.S. Department of Justice charges that it violated the Foreign Corrupt Practices Act (FCPA) when providing travel and other perks to Chinese government officials, the Department of Justice said Friday. The company also agreed to pay a $1.5 million civil fine to the U.S. Securities and Exchange Commission (SEC).

The agreement with the Department of Justice wraps up a multiyear investigation into whether Lucent, before its November 2006 merger with Alcatel, provided things of value to the Chinese officials and improperly accounted for the expenses.

The company cooperated fully with the Department of Justice and SEC investigations, an Alcatel-Lucent spokeswoman said. The company is "glad to put the matter behind us" and looks forward to successful business dealings in China in the future, she said.

From about 2000 to 2003, Lucent spent millions of dollars on more than 300 trips for Chinese government officials that included sightseeing, entertainment and leisure, the Department of Justice said. The trips were approved by senior Lucent Chinese officials, with the support of Lucent employees in the United States.

The IDG News Service is a Network World affiliate.