The U.S. Department of Justice (DOJ) has announced that two subsidiaries of Massachusetts software company entered into a non-prosecution agreement and agreed to pay a $14.54 million penalty today to resolve the government’s investigation into whether the companies improperly provided recreational travel to Chinese government officials in violation of the Foreign Corrupt Practices Act (FCPA).
According to admissions made in the resolution documents, the company through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the United States, ostensibly for training at the company's headquarters in Massachusetts, but primarily for recreational travel to other parts of the United States, including New York, Los Angeles, Las Vegas and Hawaii. The company paid a total of more than $1 million through its business partners to fund these trips, while during the same time period, the company entered into more than $13 million in contracts with the Chinese state-owned entities. Company employees typically accompanied the Chinese officials on these trips.
To read the entire DOJ Press Release please follow this link: $14M to resolve FCPA
According to admissions made in the resolution documents, the company through local business partners, arranged and paid for employees of various Chinese state-owned enterprises to travel to the United States, ostensibly for training at the company's headquarters in Massachusetts, but primarily for recreational travel to other parts of the United States, including New York, Los Angeles, Las Vegas and Hawaii. The company paid a total of more than $1 million through its business partners to fund these trips, while during the same time period, the company entered into more than $13 million in contracts with the Chinese state-owned entities. Company employees typically accompanied the Chinese officials on these trips.
To read the entire DOJ Press Release please follow this link: $14M to resolve FCPA
