Minnesota-based MTS Systems Corporation said last week that after an investigation of gift-giving, travel, and accommodation practices in its Asia operations, it ‘[removed] certain persons formerly employed in its Korea office.’
MTS had self-disclosed results of an internal investigation to the DOJ, SEC, and U.S. Air Force.
The firm produces testing gear for military and other applications.
It didn’t indicate in its latest disclosure whether settlement discussions have started with the federal government.
Nasdaq-listed MTS first appeared on our Corporate Investigations List last March.
Here’s what it said in its quarterly SEC filing last week:
As previously reported by the Company with disclosures starting in March 2012, the Company investigated certain gift, travel, entertainment and other expenses incurred in connection with some of the Company’s operations in the Asia Pacific region. The investigation focused on possible violations of Company policy, corresponding internal control issues and possible violations of applicable law, including the Foreign Corrupt Practices Act. Substantial investigative work has been completed and the Company has taken remedial actions, including changes to internal control procedures and removing certain persons formerly employed in its Korea office. The Company voluntarily disclosed this matter to the Department of Justice and the SEC. Additionally, the Company disclosed this matter to the U.S. Air Force pursuant to its Administrative Agreement with the U.S. Air Force. The Company cannot predict the outcome of this matter at this time or whether it will have a material adverse impact on its business prospects, financial condition, operating results or cash flows.
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