Payment Problems In China For Bruker
Monday, March 5, 2012 at 5:28AM
Richard L. Cassin in Bruker Corporation, China, Foreign Official, Hong Kong

An internal investigation at Massachusetts-based Bruker Corporation found evidence that employees in China and Hong Kong bribed foreign officials.

The life science technology company said in an SEC filing last week that it fired workers at its Bruker Optics subsidiary in China and Hong Kong who failed to comply with 'corporate policies and standards of conduct.' It also terminated third-party agents.

The internal investigation was triggered by 'anonymous communications,' Bruker said. 

It self reported to the DOJ and SEC in August last year. In October, it reported the possible violation of local anti-corruption laws to the Hong Kong Joint Financial Intelligence Unit and the Independent Commission Against Corruption.

Bruker said the payments 'improperly benefited employees or agents of government-owned enterprises in China.' Under the FCPA, state-owned companies are government 'instrumentalities' and their employees are foreign officials.

Bruker said it has already 'implemented an enhanced FCPA compliance program, and strengthened the financial controls and oversight' at subsidiaries operating in China and Hong Kong.

The company has 5,400 employees worldwide. Revenues last year were $1.65 billion.

It spent $4.3 million in 2011 on legal and other professional fees for the investigation.

Bruker Corporation trades on NASDAQ under the symbol BRKR.

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Download Bruker Corporation's Form 10-K (annual report in pdf) filed February 29, 2012 for the period ending December 31, 2011 here.

Article originally appeared on The FCPA Blog (https://www.fcpablog.com/).
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