Analogic Subsidiary To Pay Nearly $15 Mln To Resolve Foreign Bribery Charges

(RTTNews) - The U.S. Securities and Exchange Commission today announced that Massachusetts-based medical device manufacturer Analogic Corp. (ALOG) and its wholly-owned Danish subsidiary have agreed to pay nearly $15 million to settle parallel civil and criminal actions involving Foreign Corrupt Practices Act violations. An SEC investigation found that Analogic's Danish subsidiary, BK Medical ApS, engaged in hundreds of improper transactions with distributors that funneled about $20 million to third parties, including individuals in Russia and apparent shell companies in Belize, the British Virgin Islands, Cyprus, and Seychelles. Analogic agreed to pay $7.67 million in disgorgement and $3.8 million in prejudgment interest to settle the SEC's charges that it failed to keep accurate books and records and maintain adequate internal accounting controls. In determining the settlement, the SEC considered Analogic's self-reporting, remedial acts, and general cooperation with the SEC's investigation. BK Medical agreed to pay a $3.4 million criminal fine in a non-prosecution agreement announced today by the U.S. Department of Justice.

Lars Frost, BK Medical's former Chief Financial Officer, agreed to pay a $20,000 penalty to the SEC to settle charges that he knowingly circumvented the internal controls in place at BK Medical and falsified its books and records.