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SEC v. Oscar H. Meza

 
:
Meza, Oscar
:
SEC Civil
:
August 28, 2009
:
SEC v. Oscar H. Meza
:
SEC v. Meza, No. 1:09-01648 (D.D.C. 2009)
:
Computer & Information Technologies-Software
:
China
:
2004; 2005; 2006
:
Employees of state-owned or state-controlled companies
:
Oscar H. Meza settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint:

Meza, a U.S. citizen, served as the Vice-President for Asia-Pacific Sales and then, as the Director of Asia-Pacific Sales for Faro Technologies, Inc. ("Faro"), a U.S. software development and manufacturing company. Meza authorized bribery payments to obtain contracts for Faro. Beginning in 2004, Meza authorized the Country Manager of Faro's subsidiary, Faro Shanghai Co., Ltd. ("Faro China"), to make bribery payments termed "referral fees" to employees of Chinese state-owned companies to obtain contracts. To conceal the bribes, Meza instructed Faro China's staff to alter account entries in order to delete the actual recipient of the improper payments. In 2005, Meza and the Faro China Country Manager decided to route the corrupt payments through an intermediary to "avoid exposure," according to internal e-mails. In January 2005, Faro China entered into a false services contract with an intermediary. The intermediary would pay the bribes and send regular invoices to Faro China for payment. Meza authorized a total of $444,492 in illicit payments during the period between 2004 and 2006, generating approximately $4.5 million in sales and approximately $1.4 million in net profit.
:
Aiding and abetting anti-bribery, Aiding and abetting books and records, Aiding and abetting internal controls, Anti-bribery (Domestic Concern), Books and records (Individual), Internal Controls (Individual)
:
Civil penalty, Civil Settlement, Disgorgement, Injunction/Cease and desist, Prejudgment Interest
:
Civil penalty of $30,000 plus disgorgement and pre-judgment interest of $26,707.
:
56,707
:
0
:
Agent of Issuer, Employee of Issuer
:
Country Sales
:
U.S.
:
Contract Procurement/Retention
:
4,500,000
:
Cash
:
Sales Agent/Consultant, Subsidiary Company
:
444,492
:
China
:
The SEC charged Meza, as an individual, with direct violations of the anti-bribery and books and records provisions of the Securities Exchange Act of 1934, in addition to aiding and abetting Faro's violations. Moreover, Meza consented to the entry of a final judgment permanently enjoining him from directly violating these provisions.
:
No
:
No