SEC Charges John Deere With FCPA Violations for Subsidiary’s Role in Thai Bribery Scheme
Deere & Company agreed to pay nearly $10 million to resolve SEC charges of violating the FCPA through bribery schemes conducted by its subsidiary, Wirtgen Thailand.
Deere & Company violated the Foreign Corrupt Practices Act by failing to maintain adequate internal accounting controls for its subsidiary, Wirtgen Thailand. Between 2017 and 2020, the subsidiary used cash, travel, and luxury services to bribe Thai officials and private employees, generating $4.3 million in profits. The company agreed to pay approximately $5.4 million in disgorgement and interest plus a $4.5 million civil penalty to resolve the matter.
Deere & Company agreed to pay nearly $10 million to resolve SEC charges regarding Foreign Corrupt Practices Act violations by its subsidiary, Wirtgen Thailand. From late 2017 through 2020, Wirtgen Thailand bribed Thai government officials and private company employees with cash, international travel, and massage parlor visits to secure contracts. These actions resulted in approximately $4.3 million in illicit profits and were inaccurately recorded as legitimate expenses in Deere’s books. The SEC found that Deere failed to promptly integrate the subsidiary into its compliance environment following its 2017 acquisition. To settle the charges, Deere consented to an order to cease and desist further violations and pay $5.4 million in disgorgement and interest alongside a $4.5 million civil penalty. The company resolved the matter without admitting or denying the SEC’s specific findings.
Exhibits & Attached Documents (1)
Extracted insights
- $10.00M $10 million $10M–$100M
- $5.40M $5.4 million $1M–$10M
- $4.50M $4.5 million $1M–$10M
- $4.30M $4.3 million $1M–$10M
- company deere & company
- agency Securities and Exchange Commission
- person thai government officials
- person wirtgen thailand
- person wirtgen thailand employees
- Deere & Company agreed to pay $10 million
- Deere & Company violated Foreign Corrupt Practices Act
- Wirtgen Thailand employees bribed Thai government officials
- Wirtgen Thailand made profits
- Wirtgen Thailand made $4.3 million in profits
- Deere failed to integrate Wirtgen Thailand
- Deere violated recordkeeping and internal accounting controls provisions
- Deere consented to pay $5.4 million in disgorgement and prejudgment interest
- Deere consented to pay $4.5 million civil penalty
- SEC conducted investigation by Michelle Ramos, Denise Hansberry, Sonali Singh, and Tracy L. Price
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.
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.