In the Matter of Nortek, Inc. (2016)
Case Details
- Case Name
- In the Matter of Nortek, Inc. (2016)
- Foreign Official
- Unnamed Chinese foreign officials
- Date of Conduct
-
2009 to 2014
- Nature of Business
- Nortek, Inc. is a Delaware corporation headquartered in Providence, Rhode Island, which manufactures residential and commercial solutions for heating and air conditioning, security, and audio/visual systems. Nortek’s stock is registered with the NASDAQ Global Select Market.
- Influence to be Obtained
- According to the SEC, from at least 2009 to 2014, Nortek’s Chinese subsidiary, Linear Electronics, regularly made improper payments to Chinese officials in exchange for preferential treatment, relaxed regulatory oversight, and reduced customs duties, taxes, and fees. The improper payments were allegedly in the form of cash, gifts, travel, accommodations, and entertainment. The SEC claims that the payments were systematic, occurring at least once a month for five years—totaling approximately $290,000.
- Enforcement
- On June 7, 2016, the SEC announced that it had entered into a non-prosecution agreement with Nortek after asserting that Linear’s conduct violated the book-and-records and internal controls provisions of the FCPA. As part of the NPA, Nortek agreed to pay a total sanction of $322,058. The DOJ later publically announced that it would decline to prosecute Nortek in accordance with the FCPA Pilot Program due to the company’s voluntary disclosure, cooperation, and remediation.
- Amount of the Value
- Approximately $290,000.
- Amount of Business Related to Payment
- Not Stated
- Citizenship of Parent Entity
- United States
- Reporting Requirements
- No
- Total Combined Monetary Sanction
- $ 322,058
Defendants
Nortek, Inc.
- Citation
- In the Matter of Nortek, Inc. (May 3, 2016).
- Other Statutory Provision
- None
- Disposition
- Non-Prosecution Agreement
- Defendant Jurisdictional Basis
- Issuer
- Defendant's Citizenship
- United States
