California-based medical diagnostics and life sciences company Bio-Rad Laboratories Inc. entered into a non-prosecution agreement with the Department of Justice, Bio-Rad Labs., Inc. Non-Prosecution Agreement Letter from William J. Stellmach, U.S. Dep’t of Justice, to Douglas N. Greenburg, Latham & Watkins LLP (Nov. 3, 2014), and also consented to the entry of an SEC administrative order related to violations of the FCPA. Bio-Rad Labs., Inc., Exchange Act Release No. 73496 (Nov. 3, 2014). Bio-Rad agreed to pay a $14.35 million criminal penalty and $40.7 million in disgorgement and prejudgment interest. According to the statement of facts attached to Bio-Rad’s non-prosecution agreement with DOJ, a French subsidiary of Bio-Rad retained and paid intermediary companies “commissions” of 15% to 30%, purportedly for various services in connection with governmental sales in Russia that were never performed. These payments were inaccurately recorded in Bio-Rad’s books. Bio-Rad also failed to implement internal controls with respect to its Russian operations such that it failed to stop the payments. The SEC’s order made similar allegations and, in addition, asserted that foreign Bio-Rad subsidiaries used local intermediaries in Vietnam and Thailand to funnel bribes to officials in those countries in exchange for business, which subsequently were inaccurately recorded and consolidated into Bio-Rad’s financial statements. The SEC stated that Bio-Rad failed to prevent or detect approximately $7.5 million in bribes over a five-year period and that these bribes enabled Bio-Rad to earn about $35 million in illicit profits.