Rockwell Automation, Milwaukee, has settled a civil matter with the Securities and Exchange Commission (SEC) involving civil violations of the books and records and internal controls provisions of the U.S. Foreign Corrupt Practices Act that took place in 2006 and earlier by one of its former Power Systems subsidiaries in China. The China subsidiary was divested by Rockwell Automation in January 2007 as part of the sale of its entire Power Systems business to Baldor Electric.
Under the terms of the settlement, Rockwell will forfeit $1.8 million in profit, plus interest and a $400,000 penalty.
Rockwell said it discovered the potential violations through its normal financial review process. It voluntarily self-reported to the SEC, publicly disclosed this matter in its Form 10-K in November 2006, and fully cooperated with SEC staff during the course of the government’s investigation.