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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into Maxwell Technologies' Activities in China · Maxwell Technologies, Inc.

Information & Summary

Investigation into Maxwell Technologies' Activities in China

Related FCPA Matter:   Maxwell Technologies' Involvement in China in 2002 Information

Information & Summary

Investigation Name:    Investigation into Maxwell Technologies' Activities in China

Trend:    None

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:   

  • Swiss Federal Prosecutor’s Office

Whistleblower:    Unknown

Summary

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 were traded on the NASDAQ under the symbol "MXWL."

In its May 5, 2009 10-Q filing, Maxwell disclosed that as a result of an internal review, the company was conducting an inquiry into the nature of certain payments made to its former independent sales agent in China. The payments were made in connection with the sale of high voltage capacitor products produced by the company’s Swiss subsidiary. The payments equaled the difference between Maxwell’s quoted price for certain products and the amount that the independent sales agent was able to sell such products to certain customers in China. Maxwell disclosed that it had recorded approximately $3,216,000 as commissions to the agent between fiscal years 2006 through 2009, which were based on sales of approximately $16,100,000.

According to the company’s SEC filings, Maxwell’s internal review focused on a “thorough examination of all of its international operations and business practices, as well as a review of its compliance programs.” Maxwell disclosed that it was voluntarily sharing information related to its internal review with the SEC and DOJ and that it provided certain documents as requested by the SEC and DOJ in connection with their review. Maxwell also disclosed that it had taken certain remedial actions, including terminating its relationship with the independent sales agent in China as well as terminating its relationship with Metar SA, a former related party to the company.

Maxwell settled this matter with the SEC and the DOJ in early 2011.

Maxwell subsequently disclosed that in August 2013, its Swiss subsidiary was served with a search warrant from the Swiss federal prosecutor’s office, and that the company believes this matter relates to the same or similar facts and circumstances as the FCPA action previously settled with the SEC and the DOJ.

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