Maxwell recently reported that it will pay $14.35 million to settle FCPA charges brought by the SEC and the DOJ. The government had accused the maker of power storage devices of paying bribes to Chinese officials in order to secure contracts with state-owned manufacturers of electric-utility infrastructure.
According to the DOJ, a Maxwell subsidiary in Switzerland had paid more than $2.5 million to a Chinese agent over the course of seven years beginning in July 2002; the company fraudulently labeled these payments as sales-commission expenses. The agent then used the funds to bribe officials.
In resolving these matters, Maxwell will pay $6.35 million in profit disgorgement and prejudgment interest to the SEC, and $8 million to the DOJ. In addition, Maxwell entered into a three-year deferred prosecution agreement that requires the company to implement internal controls to detect and prevent FCPA violations.