MTS Systems, a global supplier of test systems and sensing solutions, said in a quarterly filing this month that it will not be facing an enforcement action regarding a previously disclosed investigation into potential violations of the Foreign Corrupt Practices Act.
In 2012, MTS said it investigated “certain gift, travel, entertainment and other expenses” incurred in connection with some of its operations in the Asia Pacific region. This investigation focused on possible violations of company policy, corresponding internal control issues, and potential violations of applicable law, including the FCPA, it stated.
“Substantial investigative work was completed on this matter, and we implemented remedial measures, including changes to internal control procedures and removing certain persons formerly employed in our Korea office,” the company stated.
MTS said it voluntarily disclosed this matter to the Justice Department and the SEC. It also has updated the government of an investigation into “certain business practices in China.” The company added that the investigation had “a similar focus to the 2012 investigation.”
In an Aug. 7 quarterly filing, MTS said that it was notified by the Department of Justice and the SEC that they had closed their respective investigations without further action taken by either agency.
“With the closure of the government investigations by the agencies, and the steps being taken by the company voluntarily, we believe that the matter has been resolved,” MTS said. “We are committed to continuing to monitor compliance with the company's Code of Conduct policy and applicable law.”
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