The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
Bribery of foreign officials, Falsification of books and records, Internal controls violations
No admission or denial of alleged offenses
According to the June 2011 United States Report to the OECD, "On December 10, 2010, RAE Systems, Inc. entered into a non-prosecution agreement with the Department of Justice regarding alleged violations of the books and records and internal controls provisions of the FCPA. On the same date, the SEC filed a settled civil complaint against RAE Systems in the U.S. District Court for the District of Columbia, charging the company with violations of the anti-bribery, books and records, and internal controls provisions of the FCPA. [ ] According to court records, from 2005 to 2008, the company had significant operations in the People's Republic of China (PRC), and sold its products and services primarily through two subsidiaries organized as joint ventures with local Chinese entities: RAE-KLH (Beijing) Co. Limited (RAE-KLH) and RAE Coal Mine Safety Instruments (Fushun) Co. Ltd. (RAE Fushun). A significant number of RAE-KLH's and RAE Fushun's customers were PRC government departments and bureaus, and large state-owned agencies and instrumentalities, including regional fire departments, emergency response departments and entities under the supervision of the provincial environmental agency. As described in the agreement [with the Department of Justice], RAE Systems accepted responsibility for violating the internal controls and books and records provisions of the FCPA arising from and related to improper benefits corruptly paid by employees of RAE-KLH and RAE Fushun to foreign officials in the PRC. As a result of due diligence conducted by RAE Systems before acquiring the majority of the joint venture that became known as RAE-KLH, RAE Systems was aware of improper commissions, kickbacks and "under table greasing to get deals" by employees." The SEC complaint alleged that "employees of RAE-KLH and RAW Fushun paid approximately $400,000 to Chinese government officials in violation of the FCPA's anti-bribery provisions." (Source: US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, RAE Systems, Inc. Case Summary at 30-32.)
US Report to the Organisation for Economic Co-operation and Development, "Steps taken to implement and enforce the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions," Information as of May 31, 2011, RAE Systems, Inc. Case Summary at 30-32, accessed at http://www.oecd.org/dataoecd/18/8/42103833.pdf. US Securities and Exchange Commission v. RAE Systems, Inc., Case No. 1:10-cv-2093 (D.D.C.), Complaint filed December 10, 2010, accessed at http://www.sec.gov/litigation/complaints/2010/comp21770.pdf and SEC Litigation Release No. 21770 (December 10, 2010), accessed at http://www.sec.gov/litigation/litreleases/2010/lr21770.htm.
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