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In Harris China probe, SEC issues formal investigation order

Image courtesy of Harris CorporationFlorida-based Harris Corporation said this week it has received a ‘formal order of investigation’ from the SEC relating to the operations of its Carefx subsidiary in China.

The SEC notified Harris of the stepped-up investigation on April 23, the company said.

Harris acquired Carefx in 2011. Last year it ‘became aware that certain entertainment, travel and other expenses in connection with the Carefx China operations may have been incurred or recorded improperly.’

The company conducted an internal investigation and self disclosed the results to the SEC and DOJ. Both agencies are conducting investigations, Harris said Wednesday in its latest quarterly filing with the SEC.

Harris develops communications and information technology such as secure networks for military and other government and private customers.

It operates in 125 countries with 15,000 employees. Last year it had $5.5 billion in revenue.

Through its internal investigation, Harris said it ‘learned that certain employees of the Carefx China operations had provided pre-paid gift cards and other gifts and payments to certain customers, potential customers, consultants and government regulators.’

Harris said it fired some China employees and ended the Carefx sales activity under investigation.

It also stopped the gift-giving practices at Carefx and imposed new compliance training. 

Harris Corporation trades on the NYSE under the symbol HRS.


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