SEC v. Oscar H. Meza (D.D.C. 2009)

• Case Name
• SEC v. Oscar H. Meza (D.D.C. 2009)

• Date Filed
• 09/25/2009

• Enforcement Agency
• SEC

• Countries
• China

• Foreign Official
• Employees of China state-owned or controlled entities.

• Date of Conduct
• 2004 to 2006

• Nature of Business
• Procurement of contracts for the sale of portable computerized measurement devices and software for the manufacturing sector.  Oscar H. Meza, a U.S. citizen, served as the Vice President for Asia-Pacific Sales and then, the Director of Asia-Pacific Sales for Faro Technologies, Inc. (“Faro”), a U.S. software development and manufacturing company.

• Influence to be Obtained
• The SEC’s complaint alleges that Meza authorized bribery payments to obtain contracts for Faro.  Allegedly, beginning in 2004, Meza authorized the Country Manager of Faro’s subsidiary, Faro Shanghai Co., Ltd. (“Faro China”), to make bribery payments termed “referral fees” to employees of Chinese state‑owned companies to obtain contracts.  To conceal the bribes, Meza instructed Faro China’s staff to alter account entries to delete the actual recipient of the improper payments.  The complaint further alleges that in 2005, Meza and the Faro China Country Manager decided to route the corrupt payments through an intermediary to “avoid exposure,” according to internal e‑mails.  In January 2005, Faro China entered into a false services contract with an intermediary.  The intermediary would pay the bribes and send regular invoices to Faro China for payment.  Meza authorized a total of $444,492 in illicit payments during the period between 2004 and 2006, generating approximately $4.5 million in sales and approximately $1.4 million in net profit.

• Enforcement
• On August 28, 2009, the SEC filed a settled enforcement action against Meza, charging Meza with violations of the anti‑bribery, books and records, and internal control provisions of the FCPA and aiding and abetting Faro’s violations of those provisions.  Meza, without admitting or denying the allegations in the complaint, consented to the entry of a final judgment, which (1) permanently enjoined him from future similar violations and (2) ordered him to pay a civil penalty of $30,0000 and disgorgement and prejudgment interest of $26,707.

• Amount of the Value
• $444,492.

• Amount of Business Related to Payment
• $4.5 million in sales, approximately $1.4 million in profit.

• Intermediary
• Third‑party intermediary.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 56,707

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Related Enforcement Actions
• In re Faro Technologies Inc. (2008)
  In the Matter of Faro Technologies, Inc. (2008)
  

Oscar H. Meza 

• Citation
• SEC v. Meza, No. 1:09-cv-01648 (D.D.C. 2009).

• Date Filed
• 09/25/2009

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Anti-Bribery
  • Aiding and Abetting: Books-and-Records
  • Aiding and Abetting: Internal Controls
  • Anti-Bribery

• Other Statutory Provision
• Circumventing Internal Controls/Falsifying Books and Records; 

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Defendant's Citizenship
• United States