Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Federal Court Proceeding
Docket or Case Number:
12-cv-01583
Court:
District of Columbia
Name of Prosecuting Attorneys:
Scott W. Friestad, SEC Headquarters
David Frohlich, SEC Headquarters
Matthew B. Greiner, SEC Headquarters
Stephen E. Jones, SEC Headquarters
Brent S. Mitchell , SEC Headquarters
US Assisting Agencies:
U.S. Department of Justice
Foreign Enforcement Action/Investigation:
Unknown
Foreign Assistance:
Unknown
Origin of the Proceeding:
Voluntary disclosure
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Tyco International, Ltd. ("Tyco") was incorporated in Switzerland in March 2009 and had its principal place of business in Switzerland. Prior to March 2009, Tyco was incorporated in Bermuda. Tyco issued and maintained a class of publicly traded securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934, which traded on the New York Stock Exchange and, therefore, was an "issuer" within the meaning of the FCPA.
In connection with a 2006 settlement with the Securities and Exchange Commission involving global bribery payments made by Tyco subsidiaries, Tyco commenced a review of its FCPA compliance program and a global, comprehensive internal investigation of possible additional FCPA violations. As a result of that review and investigation, certain additional FCPA violations came to light which Tyco self-reported to the Commission. The FCPA misconduct reported by Tyco showed that Tyco's books and records were misstated as a result of at least twelve different illicit payment schemes occurring at Tyco subsidiaries across the globe starting before 2006 and continuing until 2009. The schemes frequently entailed illicit payments to foreign officials that were inaccurately recorded so as to conceal the nature of the payments. Those inaccurate entries were incorporated into Tyco' s books and records.
On September 24, 2012, the SEC filed a three count complaint against Tyco alleging violations of the anti-bribery, books & records, and internal controls provisions of the FCPA. On September 25, 2012, Tyco consented to the entry of a final judgment that permanently enjoined the company from violating the books & records and internal controls provisions of the FCPA and ordered the company to pay $10,564,992 in disgorgement plus $2,566,517 in prejudgment interest. However, Judge Leon would not approve this Consent Agreement without the addition of a compliance obligation. When the judge entered final judgment on June 17, 2013, the court ordered Tyco to file annual reports to the SEC and the court describing the company's efforts to comply with the FCPA.
In a parallel criminal proceeding, the Justice Department entered into a Non-Prosecution Agreement with Tyco in which the company agreed to pay a penalty of approximately $13.68 million.
Protected Content
Please Log In or Sign Up for a free account to access restricted features of the Clearinghouse website, including the Advanced Search form and the full case pages.
When you sign up, you will have the option to save your search queries performed on the Advanced Search form.
