Faro Technologies admits to illegal FCPA bribes

An internal investigation by software maker Faro Technologies Inc. found sales of about $4.5 million in 2004-05 to Chinese customers may be linked to suspected bribes and improper payments, with additional bribes paid early in 2006. As a result of the internal investigation, Faro said it fi red some employees in the Asia-Pacifi c region and reassigned duties of other personnel in that area. It also hired a forensics accounting team to audit its China operations and to recommend improvements for the company’s internal control systems.

Commentary: One more reason to have a strong FCPA compliance program in place: Faro spent $2.2 million in legal fees in the second quarter of 2006 alone on this FCPA investigation.


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