John Deere has agreed to pay nearly $10 million over allegations one of its subsidiaries bribed Thai government officials.
The Securities and Exchange Commission announced Deere paid to resolve SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) arising out of bribes paid by its subsidiary, Wirtgen Thailand.
Wirtgen is described on its website as "a John Deere Company" and as "the global leader in road construction technology."
Deere, which is based in Moline, agreed to the entry of the SEC order and the payment but did not admit nor deny the allegations, the commission said in a news release.
The SEC’s order found that from at least late 2017 through 2020, Wirtgen Thailand employees bribed Thai government officials, including in the Royal Thai Air Force, the Department of Highways and the Department of Rural Roads to win multiple government contracts. Wirtgen employees also bribed employees of a private company to win sales to that company, the SEC said.
The order found the bribes included cash payments, massage parlor visits and international travel for the government officials and private company employees. According to the SEC, Wirtgen Thailand made approximately $4.3 million in profits as a result of the bribes.
The improper payments were inaccurately recorded as legitimate expenses in Deere’s books and records, the commission said.
“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, in the release. “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 found Deere violated the recordkeeping and internal accounting controls provisions of the FCPA.
The payment is split between $5.4 million in disgorgement and prejudgment interest and a civil penalty of $4.5 million.
nonpareilonline.com
The Securities and Exchange Commission announced Deere paid to resolve SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) arising out of bribes paid by its subsidiary, Wirtgen Thailand.
Wirtgen is described on its website as "a John Deere Company" and as "the global leader in road construction technology."
Deere, which is based in Moline, agreed to the entry of the SEC order and the payment but did not admit nor deny the allegations, the commission said in a news release.
The SEC’s order found that from at least late 2017 through 2020, Wirtgen Thailand employees bribed Thai government officials, including in the Royal Thai Air Force, the Department of Highways and the Department of Rural Roads to win multiple government contracts. Wirtgen employees also bribed employees of a private company to win sales to that company, the SEC said.
The order found the bribes included cash payments, massage parlor visits and international travel for the government officials and private company employees. According to the SEC, Wirtgen Thailand made approximately $4.3 million in profits as a result of the bribes.
The improper payments were inaccurately recorded as legitimate expenses in Deere’s books and records, the commission said.
“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, in the release. “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 found Deere violated the recordkeeping and internal accounting controls provisions of the FCPA.
The payment is split between $5.4 million in disgorgement and prejudgment interest and a civil penalty of $4.5 million.
Deere to pay $10 million for subsidiary's alleged participation in bribery scheme
The Securities and Exchange Commission said employees of the subsidiary, Wirtgen Group in Thailand, bribed Thai government officials to win contracts.
