SEC Charges RAE Systems with Violation of the Foreign Corrupt Practices Act (FCPA)

• Date: December 15, 2010
• Source: Admin

The SEC complaint charges RAE with violations of the anti-bribery, books and records, and internal con-trols provisions of the FCPA. Consenting to the entry of a permanent injunction against FCPA violations, RAE agreed to pay USD 1,147,800 in disgorgement and USD 109,212 in prejudgment interest. It agreed to pay approximately USD 1.25 million to settle the SEC's charges and an additional USD 1.7 million as criminal fine. RAE also agreed to comply with certain undertakings concerning its FCPA compliance program. The settlement is subject to court approval.  

FCPA:

FCPA is a US federal law wherein two provisions stand out:
 

1. The first provision addresses accounting transparency requirements under the Securities Ex-change Act of 1934 and
2. The other, addresses bribing foreign officials.