Bloomberg News

Tyco to Pay $26 Million to Resolve U.S. Bribery Cases

September 24, 2012

Tyco International Ltd. (TYC:US) agreed to pay more than $26 million to resolve U.S. charges that it bribed officials of companies including Saudi Aramco to win contracts.

Tyco Valves & Controls Middle East Inc., a subsidiary of Schaffhausen, Switzerland-based Tyco, agreed to pay $13.7 million as part of a guilty plea entered today before U.S. District Judge Claude Hilton in Alexandria, Virginia, for conspiring to violate the anti-bribery provisions of the Foreign Corrupt Practices Act, the U.S. Justice Department said in a statement.

In a civil proceeding, Tyco, which makes and sells products related to security, fire protection and energy, agreed to pay $13.1 million under a final judgment with the Securities and Exchange Commission, according to the statement.

From 1999 to 2009, Tyco and some of its subsidiaries paid government officials to obtain and keep business with private and state-owned entities, falsely describing the payments in their corporate books as legitimate charges, the Justice Department said.

“For more than 10 years, various Tyco entities bribed foreign officials and cooked the books to hide the payments,” Neil MacBride, the U.S. attorney for the Eastern District of Virginia, said in the statement.

Voluntary Disclosure

The plea agreement acknowledged that Tyco had voluntarily disclosed the payments, conducted its own investigation, fired employees involved and closed some subsidiaries.

“We’re pleased to have reached a final resolution and we’re definitely committed to maintaining our rigorous compliance programs across all of our business activity,” said Brett Ludwig, a spokesman for Tyco. Ludwig said the company conducts internal audits, and maintains an anonymous internal hotline for employees and other anti-corruption programs.

Alan Dodd, a representative with Aramco Services in Houston, didn’t immediately respond to an e-mail and a phone call seeking comment on the case.

The case is U.S. v. Tyco, 12-cr-00418, U.S. District Court, Eastern District of Virginia (Alexandria).

To contact the reporter on this story: Sara Forden in Washington at sforden@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • TYC
    (Tyco International Ltd)
    • $45.31 USD
    • -0.05
    • -0.11%
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