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In the Matter of Rockwell Automation, Inc.

 
:
Rockwell Automation, Inc.
:
SEC Civil
:
May 3, 2011
:
In the Matter of Rockwell Automation, Inc.
:
In the Matter of Rockwell Automation, Inc. (2011)
:
Engineering Services
:
China
:
2003; 2004; 2005; 2006
:
Employees of Chinese design institutes, which are typically state-owned.
:
Rockwell is a global company that designs and manufactures industrial automation products and services. From 2003-2006, high-ranking employees of Rockwell 's then-wholly-owned subsidiary, Rockwell Automation Power Systems (Shanghai) Ltd. ("RAPS-China"), allegedly paid over $1 million to obtain business from state-owned enterprises. RAPS-China produced industrial power transmission products, motors and drives. Its employees allegedly used third-party intermediaries to pay funds to largely state-owned design institutes, intending $615,000 to go directly to employees and $450,000 to fund sightseeing and other non-business trips. For example, RAPS-China allegedly arranged leisure travel unrelated to business and hosted design meetings in New York City simply because "everyone likes New York."

Rockwell self-reported the payments after discovering them in 2006 through its normal financial review process.
:
Books and records (Issuer), Internal controls (Issuer)
:
Cease and Desist, Civil penalty, Civil Settlement, Disgorgement
:
Disgorgement of $1,771,000, prejudgment interest of $590,091, plus a civil penalty of $400,000.
:
2,761,091
:
0
:
Issuer
:
U.S.
:
United States
:
Contract Procurement/Retention
:
1,771,000
:
Cash, Travel
:
1,065,000
:
China
:
China
:
No
:
Yes