Business & Tech

Needham Tech Company Fined for Alleged Bribes

Needham-based PTC Inc. and two subsidiaries will pay over $28 million in fines.

NEEDHAM, MA - Needham-based PTC Inc. and two subsidiaries will pay over $28 million to settle allegations that the company gave gifts and trips to Chinese government officials in an attempt to win business.

The Secretaries and Exchange Commission claims that the software company’s Chinese subsidiaries spent nearly $1.5 million from at least 2006 to 2011 on bribes to Chinese employees of state-owned companies that did business with the company, according to a press release from the FBI.

Bribes allegedly included electronics, gift cards, wine, and clothes, while trips included non-business visits to New York, Las Vegas, and Hawaii. The practice won nearly $12 million in profits from sales contracts, according to the SEC.

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In a statement, PTC said the employees responsible for the scheme have been fired and a new leadership team is in place in China.

The incident was self-reported, according to the SEC.

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