Defendant Name:
RAE Systems Inc.
Defendant Type:
Public Company
Document Reference:
2010-242
Document Details
Legal Case Name
SEC v. RAE Systems Inc.
Document Name
SEC Charges RAE Systems for Illegal Payments Made Through Joint Ventures to Win Chinese Government Contracts
Document Date
10-Dec-2010
Document Format
Civil Proceeding
Case Number
10-cv-02093
Federal District Court
District of Columbia, District of Columbia
Allegation Type
Foreign Corrupt Practices Act
Document Summary
On December 10, 2010, the SEC announced that it charged San Jose-based RAE Systems Inc. ("RAE") with violations of the Foreign Corrupt Practices Act ("FCPA") for making improper payments through two of its Chinese joint venture entities to Chinese officials in order to obtain significant government contracts for their gas and chemical detection products. According to the SEC's complaint filed in U.S. District Court for the District of Columbia, the company's $400,000 in improper payments resulted in contracts worth approximately $3 million in revenue and garnered more than $1.1 million in illicit profits. Without admitting or denying the allegations, RAE consented to the entry of a permanent injunction against FCPA violations and agreed to pay $1,147,800 in disgorgement and $109,212 in prejudgment interest. RAE also agreed to comply with certain undertakings regarding its FCPA compliance program. The settlement remains subject to court approval. In a related criminal case brought by the U.S. Department of Justice, RAE agreed to pay an additional $1.7 million criminal fine.
Disgorgement & Penalty Information
Resolutions
Injunction
Various undertakings
Monetary Penalties:
Disgorgement
Individual:
$1,147,800.00
Shared:
Pre-Judgment Interest
Individual:
$109,212.00
Shared: