Maxwell Technologies, Inc. ("Maxwell") was a manufacturer of energy storage and power delivery products and was incorporated in Delaware, headquartered in San Diego, California, and had manufacturing capabilities in the United States, Switzerland, and China. Maxwell's shares were registered with the SEC and traded on the NASDAQ under the symbol "MXWL."
Maxwell Technologies S.A. ("Maxwell S.A."), previously known as Montena Components Ltd., was a wholly owned subsidiary of Maxwell that manufactured and sold high-voltage capacitors in several countries, including China. Maxwell S.A. was incorporated and headquartered in Switzerland. Maxwell S.A.'s financial results were consolidated with Maxwell's, and although separately incorporated, the company shared employees, officers, and personnel with Maxwell.
Alain Riedo was Maxwell Technologies S.A.'s Vice President and General Manager from around 2002 to around 2006. Around May 2006, Riedo was named a Senior Vice President and officer of Maxwell Technologies, Inc. From around May 2006 until around July 2009, Riedo continued as the General Manager of Maxwell S.A., exercised supervisory authority at Maxwell and Maxwell S.A., and owned a significant number of Maxwell shares.
According to the allegations in the indictment, between about October 2002 and May 2009, Riedo, working as a senior officer at both Maxwell Technologies, Inc. and Maxwell Technologies S.A., made corrupt payments to Chinese government officials, including officials at Pinggao Group Co. Ltd., Xi-an XD High Voltage Apparatus Co., Ltd., and New Northeast Electric Shenyang HV Switchgear Co., Ltd. in order to obtain and retain business for Maxwell.
On October 15, 2013, the DOJ filed a nine count indictment in the Southern District of California against Riedo alleging (1) conspiracy to violate the anti-bribery, books & records, and internal controls provisions of the FCPA, (2-3) violations of the anti-bribery provisions of the FCPA, (4-8) knowing violations of the books & records provisions of the FCPA, and (9) knowing violations of the internal controls provisions of the FCPA.
Riedo entered into a plea agreement with the DOJ on January 17, 2024, which was filed into the docket on March 7, 2024. Under the terms of the agreement, Reido pled guilty to count 8 of the indictment, and the DOJ would dismiss the remaining counts without prejudice. On May 20, 2024, the court sentenced Riedo to 2 years of probation and ordered him to complete 300 hours of community service and to pay a fine of $55,000 plus a mandatory assessment of $100.
