PTC INC
PTC
Information Technology
2
exclusion reasons
1 theme
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
PTC Inc. paid $28.5M in combined DOJ/SEC FCPA settlements (February 2016) for bribing Chinese government officials through two China-based subsidiaries from 2006-2011. The subsidiaries provided ~$1.5M in improper travel, gifts, and entertainment to officials at state-owned enterprises. The scheme included sham overseas "training" trips — typically one day at PTC's Massachusetts office followed by tourist sightseeing — plus electronics (cell phones, iPods, GPS), gift cards, wine, and clothing. SEC disgorgement was $13.6M; DOJ criminal fine was $14.5M via non-prosecution agreement.
The SEC found that PTC Inc. failed to maintain accurate books and records and adequate internal accounting controls, allowing two China-based subsidiaries to funnel approximately $1.5 million in improper payments to officials at state-owned enterprises from 2006 to 2011 without detection. Expenditures disguised as legitimate business costs included sham "training" trips — typically one day at PTC's Massachusetts headquarters followed by tourist excursions — plus consumer electronics, gift cards, wine, and clothing. PTC's financial reporting did not reflect the true nature of these payments. The SEC ordered $13.6 million in disgorgement and prejudgment interest; the DOJ imposed a separate $14.54 million criminal fine, for a combined resolution exceeding $28 million (February 2016).
Research Sources
3 organizations
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