Settlements

ST-269
Maxwell Technologies, Inc.
Maxwell Technologies Inc.
United States
Securities and Exchange Commission
China
2011
01/31
Unknown
Legal Person
Civil
Consent to Final Judgment
Disgorgement of Profits, Prejudgment Interest
$6,350,890.00
$5,654,576
$696,314
$0
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Bribery of foreign officials, improper internal controls, books and records
No admission or denial of allegations
Yes
According to the US Department of Justice Deferred Prosecution Agreement, Maxwell Technologies accepted the following Statement of Facts: the company's wholly-owned subsidiary Maxwell Technologies S.A. (incorporated and headquartered in Switzerland) manufactured and sold high-voltage capacitors in several countries, including China. "Agent 1," a Chinese national, was a third-party agent responsible for Maxwell S.A.'s Chinese customers (listed in the Statement of Facts as (1) Pinggao Group Co. Ltd, a state-owned manufacturer of electric-utility infrastructure in Henan Province, (2) New Northeast Electric Shenyang HV Switchgear Co., Ltd., a state-owned manufacturer of electric-utility infrastructure in Liaoning Province, and (3) Xi-an XD High Voltage Apparatus Co., Ltd., a state-owned manufacturer of eletric-utility infrastructure in Shaanxi Province. From at least 2002 to 2009, Maxwell and its subsidiaries paid approximately $2,789,131 to Agent 1 to be distributed to Chinese foreign officials, in return for securing contracts that profited Maxwell, namely by using a kick-back scheme in which Agent 1 requested quotes from Maxwell S.A. on behalf of prospective Chinese state-owned entities and then upon Agent 1's instruction, Maxwell S.A. added an "extra" 20 percent to the quoted amounts to arrive at a higher price for Maxwell S.A.'s equipment. Maxwell S.A. then invoiced the Chinese state-owned entities for equipment at the higher-priced rate, which the entities paid. Agent 1 distributed the "extra amounts" to officials at the Chinese state-owned entities, including employees at Pinggao Group, shenyang HV, and Xi-an XD. (Source: US x. Maxwell Technologies, Inc., Case no. 3:11-cr-00329-JM (C.D. Cal.), Deferred Prosecution Agreement and Appendix A: Statement of Facts, filed January 31, 2011).