SEC charges Tyco for illegal payments to foreign officials
The SEC has charged Tyco International Ltd with violating the Foreign Corrupt Practices Act (FCPA) by allowing subsidiaries to arrange illicit payments to foreign officials in more than a dozen countries. A copy of the complaint has also been published.
The SEC alleges that the company was involved in a number of schemes that involved the payment of fake "commissions" or the use of third-party agents to pay monies in order to obtain lucrative contracts. The SEC estimates that Tyco's unlawful benefits amounted to more than $10.5 million. Tyco consented to a proposed final judgment that orders the company to pay $10,564,992 by way of disgorgement and $2,566,517 by way of prejudgment interest. In parallel criminal proceedings, the Justice Department entered into a non-prosecution agreement with the company agreeing to pay $13.68 million.