, in part by offering incentives to companies that come forward and voluntarily report wrongdoing.
The settlement disclosed Friday stems from bribes that Safran’s U.S.-based subsidiary, Monogram Systems, and its German unit, Evac GmbH, allegedly paid to obtain train lavatory contracts with the Chinese government that prosecutors described as lucrative. Parent company Safran is best known for its business as an aircraft parts maker.
Safran cooperated with the investigation and made remedial efforts, including firing a remaining employee allegedly involved in the misconduct and withholding the deferred compensation of another, prosecutors said. They said the misconduct had ceased even before Safran had bought the subsidiaries, and was discovered in post-acquisition due diligence.
Safran has agreed to continue to fully cooperate with the U.S. authorities’ ongoing investigation, prosecutors said, adding that they remain free to prosecute individuals. The $17.2 million Safran will turn over represents bribery-tainted profits stemming from the involvement of the U.S. subsidiary, Monogram. Prosecutors said they would defer to German authorities as to any penalty assessed against Safran in connection with Evac’s involvement.
They shut the bribe spigot off too soon.