United Technologies Charged With Violating FCPA
United Technologies Corporation paid $13.9 million to settle SEC charges that its subsidiaries Otis Elevator and Pratt & Whitney violated the FCPA by bribing foreign officials in Azerbaijan, China, and other countries to secure contracts, while failing to maintain proper internal controls and books and records.
United Technologies Corporation agreed to pay $13.9 million to resolve SEC charges under the Foreign Corrupt Practices Act, including $9.07 million in disgorgement, $919,392 in interest, and a $4 million penalty. Its subsidiaries, Otis Elevator and Pratt & Whitney, made illicit payments to officials in Azerbaijan and China to secure elevator and aircraft engine contracts, provided improper trips and gifts to officials in six countries, and engaged in a scheme to obtain confidential information from a Chinese official. The SEC found violations of the anti-bribery, books and records, and internal accounting controls provisions of the Securities Exchange Act of 1934, with UTC consenting to the order without admitting or denying guilt.
United Technologies Corporation (UTC) agreed to pay $13.9 million to settle SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) through widespread bribery and inadequate internal controls across its global operations. Its subsidiary Otis Elevator Co. made unlawful payments to Azerbaijani officials to facilitate elevator sales for public housing in Baku and engaged in a kickback scheme in China, while its Pratt & Whitney division paid a Chinese sales agent to obtain confidential information from a Chinese official to win engine contracts with a state-owned airline. The SEC also found that UTC improperly provided trips, gifts, and other benefits to foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia to secure business. These actions resulted in violations of the anti-bribery, books and records, and internal accounting controls provisions of the Securities Exchange Act of 1934. UTC consented to the SEC’s order without admitting or denying the allegations, agreeing to disgorge $9,067,142 in profits, pay $919,392 in interest, and a $4 million civil penalty. The SEC’s investigation was conducted by its FCPA Unit and received assistance from the Department of Justice’s Fraud Section and the U.S. Postal Inspection Service. The case underscores the SEC’s emphasis on robust compliance programs for U.S. companies operating internationally.
Exhibits & Attached Documents (1)
Extracted insights
- $13.90M $13.9 million $10M–$100M
- $9.07M $9,067,142 $1M–$10M
- $4.00M $4 million $1M–$10M
- $919K $919,392 $100K–$1M
- agency sec’s investigation
- agency sec’s order
- agency Securities and Exchange Commission
- person tracy l. price
- company united technologies
- Securities and Exchange Commission Announce Connecticut-based United Technologies Corporation will pay $13.9 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by making illicit payments in its elevator and aircraft engine businesses
- SEC’s order Find United Technologies subsidiary Otis Elevator Co. made unlawful payments to Azerbaijani officials to facilitate the sales of elevator equipment for public housing in Baku and as part of a kickback scheme to sell elevators in China
- SEC’s order Find United Technologies, through its joint venture, made payments to a Chinese sales agent in a bid to obtain confidential information from a Chinese official that would help the company win engine sales to a Chinese state-owned airline
- SEC’s order Find United Technologies improperly provided trips and gifts to various foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia through its Pratt & Whitney division and Otis subsidiary in order to obtain business
- Tracy L. Price Say U.S. companies with global operations must implement policies and procedures that prevent bribery and motivate employees to perform ethically
- Tracy L. Price Say Issuers with weak internal accounting controls open the door to corruption and other financial misconduct
- United Technologies Consent SEC’s order without admitting or denying the findings that it violated the anti-bribery, books and records, and internal accounting controls provisions of the Securities Exchange Act of 1934
- United Technologies Agree Pay disgorgement of $9,067,142 plus interest of $919,392 and a penalty of $4 million
- SEC’s investigation Conduct Ilana Z. Sultan and M. Shahriar Masud and supervised by Tracy L. Price
- SEC Appreciate Assistance of the Fraud Section of the Department of Justice and the U.S. Postal Inspection Service
The Securities and Exchange Commission today announced that Connecticut-based United Technologies Corporation will pay $13.9 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by making illicit payments in its elevator and aircraft engine businesses. According to the SEC’s order, United Technologies subsidiary Otis Elevator Co. made unlawful payments to Azerbaijani officials to facilitate the sales of elevator equipment for public housing in Baku and as part of a kickback scheme to sell elevators in China. The order also found that United Technologies, through its joint venture, made payments to a Chinese sales agent in a bid to obtain confidential information from a Chinese official that would help the company win engine sales to a Chinese state-owned airline. The SEC’s order also found that United Technologies improperly provided trips and gifts to various foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia through its Pratt & Whitney division and Otis subsidiary in order to obtain business. “U.S. companies with global operations must implement policies and procedures that prevent bribery and motivate employees to perform ethically,” said Tracy L. Price, Deputy Chief of the SEC Enforcement Division’s FCPA Unit. “Issuers with weak internal accounting controls open the door to corruption and other financial misconduct.” United Technologies consented to the SEC’s order without admitting or denying the findings that it violated the anti-bribery, books and records, and internal accounting controls provisions of the Securities Exchange Act of 1934, and the company agreed to pay disgorgement of $9,067,142 plus interest of $919,392 and a penalty of $4 million. The SEC’s investigation was conducted by Ilana Z. Sultan and M. Shahriar Masud and supervised by Tracy L. Price. The SEC appreciates the assistance of the Fraud Section of the Department of Justice and the U.S. Postal Inspection Service.
The Securities and Exchange Commission today announced that Connecticut-based United Technologies Corporation will pay $13.9 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by making illicit payments in its elevator and aircraft engine businesses. According to the SEC’s order, United Technologies subsidiary Otis Elevator Co. made unlawful payments to Azerbaijani officials to facilitate the sales of elevator equipment for public housing in Baku and as part of a kickback scheme to sell elevators in China. The order also found that United Technologies, through its joint venture, made payments to a Chinese sales agent in a bid to obtain confidential information from a Chinese official that would help the company win engine sales to a Chinese state-owned airline. The SEC’s order also found that United Technologies improperly provided trips and gifts to various foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia through its Pratt & Whitney division and Otis subsidiary in order to obtain business. “U.S. companies with global operations must implement policies and procedures that prevent bribery and motivate employees to perform ethically,” said Tracy L. Price, Deputy Chief of the SEC Enforcement Division’s FCPA Unit. “Issuers with weak internal accounting controls open the door to corruption and other financial misconduct.” United Technologies consented to the SEC’s order without admitting or denying the findings that it violated the anti-bribery, books and records, and internal accounting controls provisions of the Securities Exchange Act of 1934, and the company agreed to pay disgorgement of $9,067,142 plus interest of $919,392 and a penalty of $4 million. The SEC’s investigation was conducted by Ilana Z. Sultan and M. Shahriar Masud and supervised by Tracy L. Price. The SEC appreciates the assistance of the Fraud Section of the Department of Justice and the U.S. Postal Inspection Service.