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February 16, 2016

Two subsidiaries of Massachusetts software company PTC Inc. agreed to pay a $14.54 million penalty to resolve charges of violating the Foreign Corrupt Practices Act by improperly providing recreational travel to Chinese government officials.  According to company admissions, Parametric Technology (Shanghai) Software Company Ltd. and Parametric Technology (Hong Kong) Ltd., through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the U.S., ostensibly for training at PTC Inc.’s headquarters, but primarily for recreational travel to other parts of the country, including New York, Los Angeles, Las Vegas and Hawaii.  PTC paid more than $1 million through its business partners to fund these trips, while during the same time period, it entered into more than $13 million in contracts with the Chinese state-owned entities.  PTC settled related charges with the SEC by agreeing to pay $11,858,000 in disgorgement plus $1.764 million in prejudgment interest, bringing the company's total government payout to $28 million.  DOJ

February 1, 2016

Software manufacturer SAP SE will disgorge $3.7 million from profits on its sales of software to the Panamanian Government to settle charges that it violated the Foreign Corrupt Practices Act when procuring business in Panama.  An SEC investigation found that SAP’s deficient internal controls allowed a former SAP executive, Vincente Garcia, to pay $145,000 in bribes to a senior Panamanian government official and offer bribes to two others in exchange for lucrative software contracts.  The bribery scheme involved providing large discounts of up to 82% to SAP’s Panamanian business partner, who used the excessive discounts to create a slush fund out of which it could pay bribes on Garcia’s behalf.  SEC

October 5, 2015

New York-based pharmaceutical company Bristol-Myers Squibb will pay $14 million to settle SEC charges that its joint venture in China made cash payments and provided other benefits to health care providers at state-owned and state-controlled hospitals in China in exchange for prescription sales.  According to the SEC’s order instituting settled administrative proceedings, between 2009 and 2014, BMS China sales representatives sought to secure and increase business by providing health care providers in China with cash, jewelry, meals, travel, entertainment, and sponsorships for conferences and meetings.  SEC

September 28, 2015

Tokyo-based conglomerate Hitachi, Ltd. will pay a $19 million penalty to settle SEC charges that it inaccurately recorded improper payments to South Africa’s ruling political party in connection with contracts to build two multi-billion dollar power plants in violation of the Foreign Corrupt Practice Act.  SEC

August 18, 2015

BNY Mellon will pay $14.8 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) by providing valuable student internships to family members of foreign government officials affiliated with a Middle Eastern sovereign wealth fund.  An SEC investigation found that students related to foreign officials were given preferential treatment in that they were not required to meet the normally rigorous criteria of BNY Mellon’s highly competitive internship programs.  This was done to win or retain contracts to manage and service the assets of the sovereign wealth fund the foreign officials were affiliated with.  BNY’s $14.8 million payment includes $8.3 million in disgorgement and a $5 million penalty.  SEC

August 12, 2015

Vicente E. Garcia, a former vice president for SAP SE, agreed to pay $92,395 to settle charges by the SEC that he violated the FCPA by bribing Panamanian government officials to procure software license sales for SAP.  An SEC investigation found that Garcia orchestrated a scheme to pay $145,000 in bribes to one government official and promised to pay two others in order to obtain four contracts to sell SAP software to the Panamanian government.  Garcia arranged for SAP’s software to be sold at a steep discount to a Panamanian partner in order to create a slush fund that could be used to pay the Panamanian government officials.  Garcia also received kickbacks from the slush fund.  In a parallel action, the Department of Justice announced a criminal action against Garcia.  SEC

July 28, 2015

Mead Johnson Nutrition Company agreed to pay $12 million to settle the SEC’s findings that it violated the Foreign Corrupt Practices Act (“FCPA”).  An SEC investigation found that employees of Mead Johnson’s Chinese subsidiary made improper payments to healthcare professionals at government-owned hospitals to induce them to recommend Mead Johnson’s infant formula to new or expectant mothers.  SEC

May 20, 2015

Global resources company BHP Billiton agreed to pay a $25 million penalty to settle charges it violated the Foreign Corrupt Practices Act when it sponsored the attendance of foreign government officials at the 2008 Summer Olympic Games in Beijing.  Specifically, BHP Billiton invited 176 government officials and employees of state-owned enterprises to attend the Games at the company’s expense, and ultimately paid for 60 such guests as well as some spouses and others who attended along with them.  Sponsored guests enjoyed three- and four-day hospitality packages that included event tickets, luxury hotel accommodations, and sightseeing excursions valued at $12,000 to $16,000 per package.  SEC

April 8, 2015

Oregon-based defense contractor FLIR Systems Inc. agreed to pay more than $9.5 million to settle charges it violated the Foreign Corrupt Practices Act (FCPA) by financing a “world tour” of personal travel and gifts for Middle East government officials.  FLIR, which develops infrared technology for use in binoculars and other sensing products, allegedly earned more than $7 million in profits from sales influenced by the improper travel and gifts.  Whistleblower Insider

February 24, 2015

Goodyear Tire & Rubber Company agreed to pay more than $16M to settle charges it violated the Foreign Corrupt Practices Act (FCPA) when its subsidiaries paid bribes to land tire sales in Kenya and Angola.  SEC
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