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Business Crimes Hotline
Canadian Clean Fuel Technology Company and Former CEO Pay $4.1 Million to Settle China Related FCPA Case
Vancouver-based clean fuel technology company Westport Fuel Systems Inc. (Westport) and its former Chief Executive Officer, Nancy Gougarty, of South Carolina have agreed to pay a combined total of $4.1 million to the U.S. Securities and Exchange Commission (SEC) to resolve charges relating to bribes paid to a Chinese government official while seeking new business and a lucrative dividend payment on a China-based Joint Venture (JV). According to the SEC's Cease and Desist Order (Order), dated Sept. 27, 2019, the company, acting via Gougarty and others, violated the FCPA's anti-bribery, books and records, and internal controls provisions. Westport is dual listed on the NASDAQ and Toronto Stock Exchanges.
Without admitting or denying the SEC's findings, Westport will pay almost $2.55 million in disgorgement and prejudgment interest and a civil penalty of $1.5 million, while Gougarty will pay a civil penalty of $120,000 in connection with her role in the scheme. Gougarty first joined Westport in the role of Chief Operating Officer in 2013 before serving as CEO and a member of the board from July 2016 until her voluntary retirement in January 2019. The conduct in question occurred from at least 2016 according to the SEC's Order, with the company first disclosing that it was under investigation in a 2017 filing.
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