A&O Shearman FCPA Digest | SEC v. Westinghouse Air Brake Technologies Corp. (E.D. Pa. 2008)<br /> In the Matter of Westinghouse Air Brake Technologies Corporation (2008)

Source Documents

Case Name
SEC v. Westinghouse Air Brake Technologies Corp. (E.D. Pa. 2008)
In the Matter of Westinghouse Air Brake Technologies Corporation (2008)

Nature of Business
Westinghouse Air Brake Technologies Corporation (“Wabtec), a Delaware corporation, manufactures brake subsystems and related products for locomotives, freight cars, and passenger vehicles. Its common stock is registered with the SEC pursuant to Section 12(b) of the Exchange Act.

Influence to be Obtained
From 2001 to 2005, Pioneer Friction Limited (“Pioneer”), an Indian subsidiary of Westinghouse, and its employees and agents made various payments to officials of the Indian Railway Board (“IRB”), a government agency which is part of India’s Ministry of Railroads, to have its competitive bids for government business granted or considered. In connection with the improper payments, Wabtec failed to keep accurate books and records and failed to devise and maintain effective internal accounting controls.

Enforcement
In February 2008, without admitting or denying the allegations in the SEC’s complaint, Wabtec consented to the entry of a final judgment and paid a $87,000 civil penalty. In a separate proceeding, Wabtec consented to the entry of a cease-and-desist order detailing the same allegations and requiring disgorgement of $259,000 and prejudgment interest of $29,351 and the appointment of a compliance consultant.

Citation
SEC v. Westinghouse Air Brake Techs. Corp., No. 08 cv 706 (E.D. Pa. 2008);
In the Matter of Westinghouse Air Brake Techs. Corp., Admin. Proc. File No. 3 12957 (Feb. 14, 2008).