Panasonic Fined by United States in Bribery Scheme
Panasonic Corp. will pay over $143M in disgorgement plus prejudgment interest to resolve a US Securities and Exchange Commission case involving a bribery scheme, accusing the company of accounting fraud violations and violating the Foreign Corrupt Practices Act (FCPA). Panasonic consented to the order, which finds that the Japan-based corporation violated the Securities Exchange Act of 1934. In a parallel criminal, the company will pay a $137M penalty in a deferred prosecution deal reached with the US Justice Department, which accused Panasonic of violating the FCPA over books and records.
The SEC contends that Panasonics Avionics Corp. a Panasonic subsidiary that offers in-flight entertainment and communications systems, offered a government official a consulting position at a state-owned airline to incentivize that individual into assisting the avionics company in garnering business. During the time of the scam, said the SEC’s order, the avionics company was negotiating two deals valued at over $700K with the airline.