Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

USA v. Maxwell Technologies, Inc.

 
:
Maxwell Technologies, Inc.
:
DOJ Criminal
:
January 31, 2011
:
USA v. Maxwell Technologies, Inc.
:
USA v. Maxwell Technologies, Inc., 3:11-cr-00329-JM
:
Electrical/Electronics
:
China
:
2002; 2003; 2004; 2005; 2006; 2007; 2008; 2009
:
Officials at Chinese state-owned entities
:
Maxwell Technology Inc.'s wholly-owned Swiss subsidiary, Maxwell S.A., engaged a Chinese agent to sell and market Maxwell's high-voltage capacitors to consumers in China, substantially all of which were Chinese state-owned entities. From at least July 2002 through May 2009, Maxwell S.A. paid more than $2,789,131 to its Chinese agent to secure sales contracts with state-owned manufacturers of electrical-utility infrastructure. The agent accomplished these payments by adding 20% to the invoice price of the equipment; the agent distributed the extra amount to officials at the state-owned entities upon receipt. According to court documents, Maxwell's U.S. management discovered the bribery scheme in late 2002. However, payments to the agent, which the agent passed on to officials at Chinese state-owned entities, only increased. Maxwell S.A. paid its Chinese agent approximately $165,000 in 2002 and increased the payments to the agent to $1.1 million in 2008. In its books and records, Maxwell mischaracterized the bribes as sales-commission expenses.
:
Anti-bribery (Issuer), Books and records (Issuer)
:
Deferred-prosecution Agreement, Fine
:
$8 million monetary penalty.
:
8,000,000
:
0
:
Issuer
:
U.S.
:
United States
:
Contract Procurement/Retention
:
Not stated.
:
Cash
:
Sales Agent/Consultant
:
2,789,131
:
China
:
No
:
Yes