On February 16, DOJ announced the resolution of a multi-year investigation of PTC Inc., a Massachusetts-based software company, and its two Chinese subsidiaries for violations of the FCPA, pursuant to which PTC’s subsidiaries agreed to pay $14.5 million in fines and enter into a non-prosecution agreement. The case had several interesting aspects. First, despite their self-reporting, DOJ gave the Chinese subsidiaries only a 15% partial credit off the Sentencing Guidelines fine range for cooperation (and no credit for voluntary disclosure) because of their failure to disclose all relevant facts at the time of self-reporting. Second, despite the lack of U.S. ties to the Chinese subsidiaries, DOJ took action against them under its territorial jurisdiction, based on trips that the subsidiaries’ employees took to the United States with Chinese SOE officials. PTC also agreed to pay $11,858 million in disgorgement and $1,764 million in prejudgment interest to settle SEC charges based on the same conduct. The SEC also entered into a deferred prosecution agreement (“DPA”) with a former employee of a PTC subsidiary, marking the Commission’s first DPA with an individual in an FPCA case.
