Settlements

ST-151
Faro Technologies, Inc.
Faro Technologies, Inc.
United States
Department of Justice
China
2008
06/05
Unknown
Legal Person
Criminal
Non-Prosecution Agreement
Criminal Fine
$1,100,000.00
$1,100,000
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Bribery of foreign officials, Falsification of books and records
Bribery of foreign official
Yes
According to DOJ Report to Congress, "Appendix C: Summaries of Foreign Corrupt Practices Act Enforcement Actions by the United States, January 1, 1998 - September 30, 2010," Faro Technologies, at 35-37: Time period of misconduct in China was 2003-2006. Faro Technologies is a Florida-based company that develops and markets portable computerized measurement devices and software. SEC complaint stated that Oscar H. Meza, the company's Vice-President for Asia-Pacific Sales and Director of Asia-Pacific Sales for Faro. According to the Statement of Facts, Faro began direct sales of its products in China through its subsidiary, Faro China, based in Shanghai. On several occasions, Meza authorized other Faro employees to make corrupt payments directly to employees of state-owned or controlled entities in China to secure business for Faro. Meza authorized total of $444,492 in corrupt payments which allowed Faro to secure contracts worth approximately $4.5 - $4.9 million in sales an $1.4 million in net profits. Use of intermediary and shell company to funnel/disguise bribe payments. DOJ: Criminal fine of $1.1 million (Faro); Civil: Disgorgement of $1.85 million (Faro); Civil Penalty of $30K (Meza), and Disgorgement and Prejudgment interest of $26,707 (Meza). Related Criminal Enforcement Actions: In Re Faro Technologies Inc. (June 5, 2008); Civil Administrative / Enforcement Actions: SEC v. Oscar H. Meza (D.D.C., August 28, 2009), In the Matter of Faro Technologies, Inc. (June 5, 2008).