Defendant Name:
Analogic Corporation
Defendant Type:
Public Company
SIC Code:
3812
CUSIP:
03265720
Document Reference:
34-78113
Document Details
Legal Case Name
In the Matter of Analogic Corporation and Lars Frost
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
21-Jun-2016
Document Format
Administrative Proceeding
AAER
3784
Allegation Type
Foreign Corrupt Practices Act
Document Summary
On June 21, 2016, the SEC instituted settled cease-and-desist proceedings against Analogic Corporation and Lars Frost. According to the SEC: "This matter concerns violations of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act ('FCPA') by Analogic, a medical device manufacturer headquartered in Peabody, Massachusetts, and by Lars Frost, a citizen and resident of Denmark and the former Chief Financial Officer of Analogic's wholly-owned Danish subsidiary, BK Medical ApS ('BK Medical'), which sells ultrasound equipment. From at least 2001 through early 2011, BK Medical participated in hundreds of highly suspicious transactions at its distributors' direction which posed a significant risk of bribery or other improper conduct. The suspicious transactions involved BK Medical's distributor in Russia, as well as, to a lesser extent, its distributors in Ghana, Israel, Kazakhstan, Ukraine, and Vietnam. The transactions routinely involved fictitious invoices issued by BK Medical at inflated prices, overpayments to BK Medical from the distributors against the inflated invoices, and subsequent payments by BK Medical out of the distributors' excess funds to unknown third parties all over the world for unknown reasons. In short, for at least nine years, BK Medical acted as a conduit for its distributors to funnel money to parties, and for reasons, unknown to BK Medical. Approximately $20 million flowed through BK Medical from these distributors, with over $16 million from BK Medical's Russian distributor." The SEC stated that it was not imposing a civil penalty on Analogic because BK Medical, a wholly-owned subsidiary of Analogic, entered into a non-prosecution agreement with the U.S. Department of Justice under which BK Medical paid a $3,402,000 fine.
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:
$7,672,651.00
Shared:
Pre-Judgment Interest
Individual:
$3,810,311.00
Shared:
Other Defendants in Action:
