Backup and recovery solutions maker FalconStor is doing fine right now. It recently snagged an award for its popular Virtual Tape Library (VTL) offering, and according to an older update from earlier this month it had some big wins in the education sector this quarter.

The only real catch is that this all labeled as recovery rather actual growth. The stain left by a number of serious fraud accusations dating back to 2010 hasn’t been washed out as of yet – that is, probably not until now.

Reuters reports that a Brooklyn federal court ruled the company has to pay $5.8 million to settle charges that it paid bribes to JP Morgan Chase executives in order to win contracts with a total estimates worth of $12 million.

The exact identity of the client in question wasn’t disclosed for over a year, but a few details were leaked. What we knew before is that former CEO Reijane Huai, who later committed suicide, was most likely directly involved in the ordeal, along with a number of other unnamed execs.

The full story is that these workers apparently paid management at JP Morgan’s IT division over $300,000 in bribes to pick FalconStor as their supplier. These payments were filed as “”employment bonuses” and “compensation to an advisor,” so the vendor was also charged for falsifying records on top of everything else.

“FalconStor has entered into a deferred prosecution agreement with the U.S. attorney’s office in Brooklyn, in addition to forfeiting $2.9 million,” the office said.  “As part of the agreement, FalconStor will make several corporate governance reforms, including splitting the roles of chief executive officer and chairman of the board of directors and revising its gift policies.”

Another $2.9 million is going to to the SEC, which filed the civil suit.