SEC Announces Two Non-Prosecution Agreements in FCPA Cases
Akamai Technologies and Nortek Inc. entered into non-prosecution agreements with the SEC after their Chinese subsidiaries paid $40,000 and $290,000 in bribes to government officials via gift cards, meals, and cash, but avoided FCPA charges due to prompt self-reporting, full cooperation, and remedial actions, paying $671,885 and $322,058 respectively in disgorgement and interest.
Akamai Technologies agreed to disgorge $652,452 plus $19,433 in interest after its Chinese subsidiary made $40,000 in improper payments—including gift cards, meals, and entertainment—to state-owned entities to boost service sales. Nortek Inc. paid $291,403 in disgorgement plus $30,655 in interest for approximately $290,000 in bribes, including cash, travel, accommodations, and gifts, to secure preferential regulatory treatment and reduced fees. Both companies avoided FCPA charges due to self-reporting, extensive cooperation with the SEC, termination of responsible employees, and strengthened internal controls and global compliance training.
Akamai Technologies and Nortek Inc., both U.S.-based corporations, entered into non-prosecution agreements (NPAs) with the SEC after their Chinese subsidiaries engaged in bribery of government officials to gain business advantages. Akamai’s subsidiary paid $40,000 in improper gifts, meals, and entertainment to induce state-owned entities to purchase excess services, while Nortek’s subsidiary made approximately $290,000 in cash payments, travel expenses, and gifts to secure regulatory favors and reduced customs duties. Both companies self-reported the misconduct during early internal investigations, provided full transparency by sharing interview summaries, translated documents, and made witnesses available—even in China—and terminated employees involved in the violations. As a result, Akamai paid $652,452 in disgorgement plus $19,433 in interest, and Nortek paid $291,403 in disgorgement plus $30,655 in interest, but neither faced FCPA charges or additional penalties. The SEC credited their prompt action, robust remediation—including enhanced global compliance training and strengthened internal audit protocols—as exemplary conduct that saved government resources and justified the NPAs. The investigations were led by SEC Enforcement staff with assistance from the U.S. Department of Justice’s Fraud Section, underscoring the collaborative nature of the resolution.
Exhibits & Attached Documents (2)
Extracted insights
- $652K $652,452 $100K–$1M
- $291K $291,403 $100K–$1M
- $290K $290,000 $100K–$1M
- $40K $40,000 $10K–$100K
- $31K $30,655 $10K–$100K
- $19K $19,433 $10K–$100K
- company akamai technologies
- person andrew ceresney
- agency chief of the sec enforcement division's fcpa unit
- agency director of the sec enforcement division
- person Kara Brockmeyer
- agency misconduct to sec
- company non-prosecution agreements with akamai technologies and nortek inc.
- company nortek inc.
- person paul g. block
- agency sec cases
- agency sec investigations
- agency Securities and Exchange Commission
- Akamai Technologies agreed to pay $652,452 in disgorgement plus $19,433 in interest
- Akamai Technologies arranged $40,000 in payments to Chinese government-owned entities
- Nortek Inc. agreed to pay $291,403 in disgorgement plus $30,655 in interest
- Nortek Inc. made approximately $290,000 in improper payments and gifts to Chinese officials
- SEC announced non-prosecution agreements with Akamai Technologies and Nortek Inc.
- Akamai Technologies violated company's written policies by providing improper gift cards, meals, and entertainment
- Nortek Inc. received preferential treatment, relaxed regulatory oversight, or reduced customs duties from Chinese officials
- Andrew Ceresney is Director of the SEC Enforcement Division
- Kara Brockmeyer is Chief of the SEC Enforcement Division's FCPA Unit
- Akamai Technologies terminated employees responsible for the misconduct
- Nortek Inc. terminated employees responsible for the misconduct
- Peter Bryan Moores, Asita Obeyesekere, Mark Albers, Trevor Donelan conducted SEC investigations
- Paul G. Block supervised SEC cases
- Akamai Technologies self-reported misconduct to SEC
- Nortek Inc. self-reported misconduct to SEC
The Securities and Exchange Commission today announced non-prosecution agreements (NPAs) with two unrelated companies that will forfeit ill-gotten gains connected to bribes paid to Chinese officials by foreign subsidiaries. Massachusetts-based internet services provider Akamai Technologies has agreed to pay $652,452 in disgorgement plus $19,433 in interest. According to the NPA, Akamai’s foreign subsidiary arranged $40,000 in payments to induce government-owned entities to purchase more services than they actually needed. Employees at the foreign subsidiary violated the company’s written policies by providing improper gift cards, meals, and entertainment to officials at these state-owned entities to build business relationships. Rhode Island-based residential and commercial building products manufacturer Nortek Inc. has agreed to pay $291,403 in disgorgement plus $30,655 in interest. According to the NPA, approximately $290,000 in improper payments and gifts were made to Chinese officials by Nortek’s subsidiary in order to receive preferential treatment, relaxed regulatory oversight, or reduced customs duties, taxes, and fees. These included cash payments, gift cards, meals, travel, accommodations, and entertainment. Both companies self-reported the misconduct promptly, and they cooperated extensively with the ensuing SEC investigations. The non-prosecution agreements stipulate that the companies are not charged with violations of the Foreign Corrupt Practices Act (FCPA) and do not pay additional monetary penalties. “When companies self-report and lay all their cards on the table, non-prosecution agreements are an effective way to get the money back and save the government substantial time and resources while crediting extensive cooperation,” said Andrew Ceresney, Director of the SEC Enforcement Division. Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit, added, “Akamai and Nortek each promptly tightened their internal controls after discovering the bribes and took swift remedial measures to eliminate the problems. They handled it the right way and got expeditious resolutions as a result.” Among the companies’ actions outlined in the NPAs: Reported the situation to the SEC on their own initiative in the early stages of internal investigations. Shared detailed findings of the internal investigations and provided timely updates to enforcement staff when new information was uncovered. Provided summaries of witness interviews and voluntarily made witnesses available for interviews, including those in China. Voluntarily translated documents from Chinese into English. Terminated employees responsible for the misconduct. Strengthened their anti-corruption policies and conducted extensive mandatory training with employees around the world with a focus on bolstering internal audit procedures and testing protocols. The SEC’s investigations were conducted by Peter Bryan Moores, Asita Obeyesekere, Mark Albers, and Trevor Donelan. The cases were supervised by Paul G. Block. The SEC appreciates the assistance of the Fraud Section of the U.S. Department of Justice.
The Securities and Exchange Commission today announced non-prosecution agreements (NPAs) with two unrelated companies that will forfeit ill-gotten gains connected to bribes paid to Chinese officials by foreign subsidiaries. Massachusetts-based internet services provider Akamai Technologies has agreed to pay $652,452 in disgorgement plus $19,433 in interest. According to the NPA, Akamai’s foreign subsidiary arranged $40,000 in payments to induce government-owned entities to purchase more services than they actually needed. Employees at the foreign subsidiary violated the company’s written policies by providing improper gift cards, meals, and entertainment to officials at these state-owned entities to build business relationships. Rhode Island-based residential and commercial building products manufacturer Nortek Inc. has agreed to pay $291,403 in disgorgement plus $30,655 in interest. According to the NPA, approximately $290,000 in improper payments and gifts were made to Chinese officials by Nortek’s subsidiary in order to receive preferential treatment, relaxed regulatory oversight, or reduced customs duties, taxes, and fees. These included cash payments, gift cards, meals, travel, accommodations, and entertainment. Both companies self-reported the misconduct promptly, and they cooperated extensively with the ensuing SEC investigations. The non-prosecution agreements stipulate that the companies are not charged with violations of the Foreign Corrupt Practices Act (FCPA) and do not pay additional monetary penalties. “When companies self-report and lay all their cards on the table, non-prosecution agreements are an effective way to get the money back and save the government substantial time and resources while crediting extensive cooperation,” said Andrew Ceresney, Director of the SEC Enforcement Division. Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit, added, “Akamai and Nortek each promptly tightened their internal controls after discovering the bribes and took swift remedial measures to eliminate the problems. They handled it the right way and got expeditious resolutions as a result.” Among the companies’ actions outlined in the NPAs: Reported the situation to the SEC on their own initiative in the early stages of internal investigations. Shared detailed findings of the internal investigations and provided timely updates to enforcement staff when new information was uncovered. Provided summaries of witness interviews and voluntarily made witnesses available for interviews, including those in China. Voluntarily translated documents from Chinese into English. Terminated employees responsible for the misconduct. Strengthened their anti-corruption policies and conducted extensive mandatory training with employees around the world with a focus on bolstering internal audit procedures and testing protocols. The SEC’s investigations were conducted by Peter Bryan Moores, Asita Obeyesekere, Mark Albers, and Trevor Donelan. The cases were supervised by Paul G. Block. The SEC appreciates the assistance of the Fraud Section of the U.S. Department of Justice.