Allegations by short seller lead to corruption investigation of California-based electronics manufacturer

Financial Crimes DOJ SEC FCPA

In a securities filing on February 1, a California-based electronic systems manufacturer revealed that the DOJ and SEC have launched investigations into its FCPA compliance and regarding trading by company employees in the company's securities. These investigations were spurred by a report issued in December 2016 by a short seller, which accused the company of paying bribes to win a major contract in Albania. The company has denied that allegation, and stated in its Form 8-K filing that it is cooperating with the government’s investigations.