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SEC v. Westinghouse Air Brake Technologies Corporation

 
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Wabtec - Westinghouse Air Brake Technologies Corporation
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SEC Civil
:
February 14, 2008
:
SEC v. Westinghouse Air Brake Technologies Corporation
:
SEC v. Westinghouse Air Brake Technologies Corporation, No. 08-CV-706, (E.D.Pa. 2008); SEC v. Westinghouse Air Brake Technologies Corporation, SEC Adminstrative Proceeding File No. 3-12957 (Feb. 14, 2008)
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Transportation-Railroad
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India
:
2001; 2002; 2003; 2004; 2005
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Employees of the Indian Railway Board.
:
Westinghouse Air Brake Technologies Corporation ("Wabtec") settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint. From 2001 to 2005, Pioneer Friction Limited ("Pioneer"), a wholly-owned subsidiary of Wabtec, allegedly made approximately $137,400 in payments to employees of the Indian Railway Board to secure contracts, realizing profits of approximately $259,000.
Pioneer allegedly used "marketing agents" to generate cash for these payments, paying the agents, who would return cash to the company less a commission. Pioneer, and Wabtec, allegedly did not properly account for these payments in their books and records, classifying them as "consulting" expenses and supplies and did not adequately train or monitor employees with respect to the FCPA. The SEC filings alleged the same contract procurement payments as the DOJ non-prosecution agreement, but did not include the faciliation payments alleged in the DOJ agreement. The SEC charged Wabtec with anti-bribery, books and records, and internal control violations. Wabtec consented to the entry of a final judgment and paid an $87,000 civil penalty. In a separate proceeding, Wabtec consented to the entry of a cease and desist order detailing the same allegations and requiring disgorgement of $259,000 and pre-judgement interest of $29,351 and the appointment of a compliance consultant for a 60-day review.
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Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
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Civil penalty, Disgorgement, Prejudgment Interest
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$259,000 in disgorgement of profits plus $29,351 in pre-judgment interest; $87,000 civil penalty.
:
375,351
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0
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Issuer
:
U.S.
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Contract Procurement/Retention
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259,000
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Cash
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Direct, Sales Agent/Consultant
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137,400
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India
:
No
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India