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Former China Head of Harris Corporation Pays $46,000 to Settle SEC's FCPA Allegations

September 19, 2016, Covington Alert

On September 13, 2016, Jun Ping Zhang (“Zhang”), former head of Harris Corporation’s (“Harris”) subsidiary in China, agreed to pay $46,000 to settle allegations by the U.S. Securities and Exchange Commission (“SEC”) that Zhang knowingly authorized and facilitated bribes to Chinese government officials at state-owned hospitals and local health departments and caused Harris’s books and records to inaccurately record these payments as legitimate business expenses. The SEC alleged that up to $1 million in improper payments were made during April 2011 and April 2012 and as a result, the China-based subsidiary was awarded over $9.6 million in contracts by state-owned entities.

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