How Nortek and Akamai Escaped SEC and DOJ Prosecution for Chinese Bribery

Nortek, a home security and ventilation manufacturer, and Akamai Technologies, a cloud services provider, have entered into non-prosecution agreements with the SEC in unrelated cases, after each company self-reported corruption at subsidiaries in China. Nortek will pay about $320,000 and Akamai will pay about $670,000 to resolve the matters. The DOJ also issued letters indicating that it will decline to prosecute both companies. Together with the NPAs, these declinations are widely seen as a signal from the government that self-reporting, cooperation and remediation can net a company more than just a penalty discount. We explore the settlements and what lies behind them. See The FCPA Report’s three-part series on the DOJ’s Pilot Program “Going Deep on the Fraud Section’s FCPA Pilot Program” (Apr. 20, 2016); “How Will the Fraud Section’s Pilot Program Change Voluntary Self-Reporting?” (May 4, 2016); and “Earning Cooperation Credit Under the Fraud Section’s FCPA Pilot Program” (May 18, 2016).

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