February 16, 2016 – Massachusetts-based technology company PTC Inc. and its Chinese subsidiaries will pay more than $28 million to settle civil and criminal actions involving violations of the Foreign Corrupt Practices Act (FCPA). An SEC investigation found that two Chinese subsidiaries of PTC provided non-business related travel and other improper payments to various Chinese government officials in an effort to win business. Specifically, the SEC’s order found that from 2006 to 2011, PTC’s subsidiaries provided improper travel, gifts, and entertainment totaling nearly $1.5 million to Chinese government officials. PTC gained nearly $11.8 million in profits from contracts with state-owned entities whose officials received the improper payments. PTC will pay about $13.6 million to settle the SEC’s charges and its Chinese subsidiaries will pay $14.54 million in a non-prosecution agreement with the DOJ. The SEC also announced its first deferred prosecution agreement with an individual in an FCPA case. The SEC agreed to defer for three years, FCPA charges against Yu Kai Yuan, a former employee of one of PTC’s Chinese subsidiaries, based on his significant cooperation with the SEC’s investigation. SEC
* * *If you would like more information or would like to speak to a member of Constantine Cannon’s whistleblower lawyer team, please click here.