Westport Fuel Systems (WPRT) - Get Report and its former CEO agreed to pay more than $4.1 million to resolve charges that they violated the Foreign Corrupt Practices Act, the Securities and Exchange Commission said on Friday.
The SEC said the charges involved paying bribes to a government official in China.
Westport said in a release Friday that it neither admits nor denies any violation of the FCPA.
The company's shares finished Friday trading up 9.2% at $2.85.
The agency said that the Vancouver company, acting through former CEO Nancy Gougarty and others, "engaged in a scheme to bribe a Chinese government official to obtain business and a cash dividend payment by transferring shares of stock in Westport's Chinese joint venture to a Chinese private equity fund in which the government official held a financial interest."
The SEC said Westport concealed the identity of the Chinese private equity fund "by falsely identifying a different entity as the counterparty to the transaction."
The settlement sees Westport pay a civil penalty of $1.5 million, interest of $196,000 and $2.35 million representing the disgorgement of proceeds related to the transaction. Gougarty agreed to pay a civil penalty of $120,000.
Westport said it has also agreed to a two-year period of self-reporting requirements around FCPA compliance activities.