Subsidiary of US aircraft engine and technology company under investigation for potentially improper meal, entertainment, and gift expenditures
United Technologies Corporation (UTC) has reported that before its acquisition of Rockwell Collins, Inc. in November 2018, Rockwell Collins had voluntarily reported to the Department of Justice and the Securities and Exchange Commission an internal investigation regarding meal, entertainment, and gift expenditures by B/E Aerospace, which Rockwell Collins acquired in 2017. According to UTC, the internal investigation resulted from Rockwell Collins’ post-acquisition compliance review of B/E Aerospace’s expenditures in China. The investigation was disclosed by Rockwell Collins in 2018; however, this is the first SEC filing in which UTC has disclosed the matter. The company says that it is cooperating with the DOJ and SEC in the ongoing investigation.