Misonix reports Chinese distributor to SEC, DOJ over possible FCPA issues

Misonix (NSDQ:MSON) this week reached out to the Securities and Exchange Commission and the U.S. Department of Justice over possible issues with the Chinese distributor of its products, according to an SEC filing posted today.

The company said that on Sept. 27 and Sept. 28, respectively, it contacted the SEC and DOJ to “voluntarily inform” them that it may have “had knowledge of certain business practices of the independent Chinese entity that distributes its products in China, which practices raise questions under the Foreign Corrupt Practices Act.

The company said its audit committee and board of directors have engaged outside counsel to conduct an internal investigation to review those, and other, matters, and that the investigation is ongoing.

Currently, Misonix said it has no information from the investigation or otherwise that would suggest its previously reported financial statements and results are “incorrect in any material respect,” according to an SEC filing.

“The company intends to cooperate fully with the DOJ and SEC as the investigation continues. At this stage, the company is unable to predict what, if any, action the DOJ or the SEC may take or what, if any, penalties or remedial measures these agencies may seek,” Misonix wrote in an SEC filing.

Misonix said that any ruling that found the company’s operations or activities are outside compliance with laws or regulations could mean fines, civil and criminal penalties.

The filing follows the announcement that Misonix would delay its annual report due to “deficiencies” in its internal financial reporting controls, which it declared earlier this month.

The Farmingdale, N.Y.-based company also said it named Joseph Dwyer as interim CFO, replacing Richard Zaremba, who was named senior finance VP.

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