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.
Rockwell Automation Inc.
Rockwell Automation Inc.
Securities and Exchange Commission
Consent to Cease-and-Desist Order
Disgorgement of Profits, Prejudgment Interest, Civil Penalty
According to Law.com, citing Alexandra Wrage of Trace International as source, this case was unusual in that the Department of Justice chose not to bring charges against the company (termed "split decision" by SEC and DOJ). (Source: Brian Zabcik, "Reasonable Minds Can Disagree: SEC, DOJ Part Ways on Rockwell Payments," Law.com, May 5, 2011, accessed at http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202492959767). The SEC Cease-and-Desist Order made the following findings of misconduct (which Rockwell did not admit or deny as part of the settlement agreement): (1) from 2003 to 2006, payment of $615,000 by certain employees of Rockwell's former subsidiary in China, China Rockwell Automation Power Systems (Shangai) Ltd. to Design Institutes, which were typically state-owned enterprises and (2) approximately $450,000 to fund sightseeing and other non-business trips for employees of Design Institutes and other state-owned companies. Rockwell realized approximately $1.7 million in net profits on sales contracts with end-user Chinese government-owned companies that were associated with payments to the Design Institutes. (Source: In the Matter of Rockwell Automation, Inc., Order Instituting Cease and Desist Order, SEC Administrative Proceeding File No. 3-14364 (May 3, 2011).
In the Matter of Rockwell Automation, Inc., Administrative Proceeding, File No. 3-14364, Order Instituting Cease-and_Desist Proceedings (May 3, 2011), accessed at http://www.sec.gov/litigation/admin/2011/34-64380.pdf; Brian Zabcik, "Reasonable Minds Can Disagree: SEC, DOJ Part Ways on Rockwell Payments," Law.com, May 5, 2011, accessed at http://www.law.com/jsp/cc/PubArticleCC.jsp?id=1202492959767.
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