Defendant Name:
Watts Water Technologies, Inc.
Defendant Type:
Public Company
SIC Code:
3491
CUSIP:
94274910
Document Reference:
34-65555
Document Details
Legal Case Name
In the Matter of Watts Water Technologies, Inc. and Leesen Chang
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Cease-and-Desist Orders and Civil Penalties
Document Date
13-Oct-2011
Document Format
Administrative Proceeding
AAER
3328
Allegation Type
Foreign Corrupt Practices Act
Document Summary
On October 13, 2011, the Commission accepted the respondents offer of settlement and imposed cease-and-desist orders and civil penalties. According to the SEC: "This matter concerns violations of the books and records and internal controls provisions of the Foreign Corrupt Practices Act ('FCPA') by Watts Water Technologies, Inc ('Watts') and Leesen Chang ('Chang'). The violations took place at Watts Valve Changsha Co., Ltd., ('CWV') a wholly-owned Chinese subsidiary that Watts established in November 2005 to purchase the assets and businesses of Changsha Valve Works 'Changsha Valve').... Employees of CWV made improper payments to employees of certain design institutes. The purpose and effect of those payments was to influence the design institutes to recommend CWV valve products to Project [state-owned entities] and to create design specifications that favored CWV valve products. CWV's improper payments generated projects for Watts of more than $2.7 million."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Self Reporting to SEC
Monetary Penalties:
Disgorgement
Individual:
$2,755,815.00
Shared:
Civil Penalty
Individual:
$200,000.00
Shared:
Pre-Judgment Interest
Individual:
$820,791.00
Shared:
Other Defendants in Action:
