Faro Technologies Inc. (Faro), was a software development and manufacturing company with headquarters in Lake Mary, Florida. Defendant Oscar Meza ("Meza") was the Director of Asia-Pacific Sales for Faro. Faro Shanghai Co., Ltd ("Faro-China") is a subsidiary of Faro.
Beginning in 2004, Meza authorized the Country Sales Manager at Faro-China to make bribery payments termed "referral fees" to employees of Chinese state-owned companies in order to obtain contracts. The Country Sales Manager requested permission from two Faro officers and Meza to "do business [on behalf of Faro] the Chinese way," explaining that "to have a good relationship with customers in China" you have to give them "money." As a result of Meza's actions, Faro-China paid a total of $444,492 in bribes from 2004 to 2006, generating approximately $4,500,000 in sales and approximately $1,400,000 in net profit.
On August 28, 2009, the SEC filed a complaint against Meza, charging him with aiding and abetting, and violating the anti-bribery, internal controls and books and records provisions of the FCPA. At the same time, without admitting or denying the SEC's allegations, Meza consented to the entry of a final judgment permanently enjoining him from future violations of the FCPA. Meza agreed to pay a $30,000 civil penalty, $19,720 in disgorgement, and $6,987 in prejudgment interest.
In a related action, Faro consented to the entry of an administrative cease and desist order permanently enjoning the company from future violations of the FCPA. Faro was also ordered to pay disgorgement of $1,411,306 and prejudgment interest of $439,637.32.
