September 10, 2024 4:52 PM EDT | Source: Newsfile SEC Press Digest
Washington, D.C.–(Newsfile Corp. – September 10, 2024) – The Securities and Exchange Commission today announced that Deere & Company, which does business as John Deere, agreed to pay nearly $10 million to resolve SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) arising out of bribes paid by its wholly owned subsidiary, Wirtgen Thailand. The company is an Illinois-based global manufacturer of agricultural machinery and heavy equipment.
The SEC’s order finds that, from at least late 2017 through 2020, Wirtgen Thailand employees bribed Thai government officials with the Royal Thai Air Force, the Department of Highways, and the Department of Rural Roads to win multiple government contracts and also bribed employees of a private company to win sales to that company. The order finds that the bribes included cash payments, massage parlor visits, and international travel for the government officials and private company employees. According to the SEC’s order, Wirtgen Thailand made approximately $4.3 million in profits as a result of these bribes. The improper payments were inaccurately recorded as legitimate expenses in Deere’s books and records.
“After acquiring Wirtgen Thailand in 2017, Deere failed to timely integrate it into its existing compliance and controls environment, resulting in these bribery schemes going unchecked for several years,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. “This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place.”
The SEC’s order found that Deere violated the recordkeeping and internal accounting controls provisions of the FCPA. Without admitting or denying the SEC’s findings, Deere consented to the entry of the SEC’s order requiring it to cease and desist from further violations and to pay disgorgement and prejudgment interest totaling approximately $5.4 million and a civil penalty of $4.5 million.
The SEC’s investigation was conducted by Michelle Ramos, Denise Hansberry, Sonali Singh, and Tracy L. Price of the SEC’s FCPA Unit.
SOURCE: Newsfile SEC Press Digest
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