On May 29, 2009, the SEC announced the filing of an enforcement action against Thomas Wurzel, the former President of ACL Technologies, Inc. (“ACL”), charging him with violations of the anti-bribery, books and records and internal controls provisions of the FCPA.32 According to the SEC Complaint, between late 2001 and 2002, Wurzel allegedly authorized illicit payments made to an Egypt-based agent, despite knowing or deliberately disregarding the high probability that a portion of the payments made to the agent would be offered or made to Egyptian Air Force officials.33 The payments were allegedly made to secure a contract valued at $5.3 million, which amounted to net profits of $267,571. Without admitting or denying the allegations in the Complaint, Wurzel agreed to the entry of a final judgment permanently enjoining him from future violations of the FCPA and paid a civil penalty of $35,000.

ACL is a former indirect wholly owned subsidiary of United Industrial Corporation (“UIC”), an aerospace and defense contractor. In a related proceeding, UIC agreed to enter into a cease and desist order with the SEC that prohibited it from committing or causing future violations of the FCPA and to pay $337,679.42 in disgorgement of profits and prejudgment interest.34

Links to Relevant Documents:

SEC Litigation Release

SEC Complaint

SEC Cease and Desist Order