A unit of Tyco International has pleaded guilty to conspiring to violate of the Foreign Corrupt Practices Act (FCPA). But Tyco the parent was granted a non prosecution agreement. Tyco will pay more than $26 million to resolve the charges. Tyco, based in Switzerland, manufactures and sells products related to security, fire protection and energy. The company will pay a $13.68 million penalty for falsifying books and records in connection with payments by its subsidiaries to government officials in various countries in order to obtain and retain business. Tyco Valves & Controls Middle East Inc. – an indirect, wholly owned subsidiary of Tyco that sold and marketed valves and other industrial equipment throughout the Middle East for the oil, gas, petrochemical, commercial construction, water treatment and desalination industries – pled guilty to conspiring to violate the anti-bribery provisions of the FCPA. The company paid bribes to officials employed by Saudi Aramco, an oil and gas company controlled and managed by the government of the Kingdom of Saudi Arabia, in order to obtain contracts with Saudi Aramco.
At the conclusion of the plea proceeding, the court ordered TVC ME to pay a $2.1 million fine, which is included as part of the $13.68 million penalty. The Department entered into a non-prosecution agreement with Tyco. According to the NPA, a number of Tyco’s subsidiaries made payments, both directly and indirectly, to government officials in order to obtain and retain business with private and state-owned entities, and falsely described the payments in Tyco’s corporate books, records and accounts as legitimate charges.
From 1999 to 2009, Tyco knowingly conspired to falsify its books and records in connection with these payments. In addition to the monetary penalty, Tyco and TVC ME also agreed to cooperate with the department, to report periodically to the department concerning the companies’ compliance efforts, and to continue to implement an enhanced compliance program and internal controls designed to prevent and detect FCPA violations. In the parallel civil proceedings, Tyco consented with the SEC to a proposed final judgment that orders the company to pay $10,564,992 in disgorgement and $2,566,517 in prejudgment interest – which, together with the Department of Justice penalty, totals more than $26 million.
Source: Corporate Crime Reporter
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