NEW YORK (GenomeWeb) — The US Securities and Exchange Commission today charged Bruker with violating the Foreign Corrupt Practices Act.
The SEC charged that the Billerica, Mass.-based company provided non-business related travel and improper payments to Chinese government officials in an effort to win business.
Bruker has agreed to pay approximately $2.4 million to settle the charges, including $1,714,852 in disgorgement, $310,117 in prejudgment interest, and a $375,000 penalty.
An investigation by the agency found that Bruker lacked sufficient internal controls to prevent and detect roughly $230,000 in improper payments made out of its China-based offices. According to the SEC, the company's China-based offices falsely recorded these payments in their records as legitimate business and marketing expenses.
Bruker realized roughly $1.7 million in profits from sales contracts with state-owned entities in China whose officials received the improper payments, the SEC said. It added that Bruker self-reported the misconduct and provided "extensive cooperation" during the SEC's investigation.
The company has consented to the order without admitting or denying the SEC findings.