Bruker Resolves FCPA Allegations
According to the SEC order, the violations took place between 2005 and 2011 and occurred at all four Bruker Scientific Instruments divisions in China. The violations include $119,710 for 17 trips by Chinese government officials and $111,228 for 12 “suspect Collaboration Agreements.” The $2.4 million payment to the SEC consists of $1.7 million in disgorgement, $310,117 in prejudgement interest and a $375,000 penalty.
Washington, DC 12/15/14; Washington, DC 12/15/14—The SEC and Bruker have announced charges and a settlement in the SEC’s investigation of violations of the Foreign Corrupt Practices Act (FCPA) by the firm (see IBO 8/15/11). The SEC charged the company with violating the FCPA by providing non-business–related travel and improper payments to Chinese government officials. The SEC found that Bruker lacked sufficient internal controls for the prevention and detection of $230,000 in improper payments, which were recorded as legitimate business expenses. The payments resulted in $1.7 million in profits from sales contracts with state-owned entities. Bruker has taken remedial steps to revise its compliance program and enhanced internal controls over travel and contract approvals, according to the SEC. Bruker entered into an administrative cease-and-desist order and will pay $2.4 million. Bruker did not admit or deny the finding, and the SEC recognized the company’s cooperation in the investigation.
