SEC Announces Two Non-Prosecution Agreements In FCPA Cases

(RTTNews) - The U.S. Securities and Exchange Commission announced non-prosecution agreements or NPAs with two unrelated companies that will forfeit ill-gotten gains connected to bribes paid to Chinese officials by foreign subsidiaries.

Massachusetts-based internet services provider Akamai Technologies(AKAM) has agreed to pay $652,452 in disgorgement plus $19,433 in interest. According to the NPA, Akamai's foreign subsidiary arranged $40,000 in payments to induce government-owned entities to purchase more services than they actually needed. Employees at the foreign subsidiary violated the company's written policies by providing improper gift cards, meals, and entertainment to officials at these state-owned entities to build business relationships. Rhode Island-based residential and commercial building products manufacturer Nortek Inc. has agreed to pay $291,403 in disgorgement plus $30,655 in interest. According to the NPA, approximately $290,000 in improper payments and gifts were made to Chinese officials by Nortek's subsidiary in order to receive preferential treatment, relaxed regulatory oversight, or reduced customs duties, taxes, and fees. These included cash payments, gift cards, meals, travel, accommodations, and entertainment.

Both companies self-reported the misconduct promptly, and they cooperated extensively with the ensuing SEC investigations. The non-prosecution agreements stipulate that the companies are not charged with violations of the Foreign Corrupt Practices Act (FCPA) and do not pay additional monetary penalties.