Articles Tagged with United Technologies foreign bribe

United Technologies Corporation of Connecticut will pay the Securities and Exchange Commission $13.9 million to end charges that it violated federal law by bribing Azerbaijani officials to get public housing elevator businesses in Baku. The company also bribed a Chinese sales agent in an attempt to obtain confidential information from a Chinese official to help win engine sales to state-owned Air China, through a joint venture. The SEC also said that United Technologies improperly provided trips and gifts to various foreign officials in China, Kuwait, South Korea, Pakistan, Thailand, and Indonesia through its Pratt & Whitney division and Otis subsidiary. Azerbaijan is located just north of Iran on the Caspian Sea.

In Azerbaijan, the Otis Elevator unit hired agents from Russia without doing any due diligence.”None of [the agents] had local experience in Azerbaijan or reliable experience in either import/export or the elevator industry,” the SEC order said.

In China, an agent for a joint venture that included Pratt & Whitney asked for and received “a commission advance of $2 million purportedly for an office expansion,” the SEC said. The agent didn’t provide any documentation to support its need for the advance. The joint venture paid the China agent $55 million in commissions from 2009 to 2013.