Foreign Corrupt Practices Act: Enforcement Action Dataset

Initiation Date: 09/12/2016

Prosecuting Agency: U.S. Securities and Exchange Commission

Type of Action: SEC Administrative Proceeding

Docket or Case Number: 3-17535

Name of Prosecuting Attorneys: Unknown

US Assisting Agencies:

U.S. Department of Justice
Federal Bureau of Investigation

Foreign Enforcement Action/Investigation: Unknown

Foreign Assistance: Unknown

Origin of the Proceeding: Unknown

Whistleblower: Unknown

Case Status: Resolved

Summary

Harris Corporation, a Delaware corporation headquartered in Florida, was an international communications and information technology company that provided services to both government and commercial markets in more than 125 countries. Harris’s common stock was registered with the SEC and traded on the New York Stock Exchange.

CareFx Corporation (“CareFx”) was a wholly-owned subsidiary of Harris that dealt primarily with government healthcare providers in China.

Hunan CareFx Information Technology, LLC (“CareFx China”) was a Chinese legal entity that developed software in support of CareFx’s operations in the United States. In late 2009, CareFx China also began to pursue opportunities to sell its electronic medical records software in China. CareFx China’s customers were primarily Chinese state-owned hospitals and local Chinese Departments of Health. CareFx China’s books and records were consolidated into Harris Corp.'s financial statements through CareFx. In June, 2015, Harris terminated all employees in CareFx China and no longer has any active China-based business operations.

Jun Ping Zhang, a United States resident and citizen, was employed by Harris as both Harris’s Vice President of Technology and CareFx China’s Chairman and CEO. In April 2012, Harris relieved Ping of his duties as Chairman and CEO of CareFx China, and later terminated his services at Harris in July 2012.

According to the allegations in the SEC’s Cease and Desist Order, from April 2011 through April 2012, Jun Ping Zhang facilitated a bribery scheme to obtain business for CareFx China by authorizing or allowing as much as $1 million in bribes to government officials at Chinese state-owned hospitals and regional health departments. In all, these bribes helped CareFx China secure approximately $9.6 million in contracts with Chinese state-owned entites. Moreover, Ping knowningly authorized and allowed staff at CareFx China to submit false expense receipts to CareFx China’s accounting department, which were subsequently incorpoated into Harris Corp.’s books and records.

In an administrative proceeding on September 13, 2016, the SEC filed a settled Cease and Desist Order against Ping alleging violations of the anti-bribery and knowing violations of the books & records and internal controls provisions of the FCPA. Ping neither admitted nor denied the findings in the order. Under the terms of the Cease and Desist Order, Ping was ordered to cease violations of the FCPA and ordered to pay a civil penalty of $46,000.

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| Enforcement Action Dataset

Enforcement Action Dataset

Case Information

In the Matter of Jun Ping Zhang

Case Information

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