SEC Charges Former CEO of Chilean-Based Chemical and Mining Company With FCPA Violations
Former SQM CEO Patricio Contesse González agreed to pay $125,000 to settle SEC charges that he directed $15 million in improper payments to Chilean political figures over seven years using fake vendor documentation, falsified accounting records, and misled auditors, without admitting or denying the allegations.
Patricio Contesse González, former CEO of SQM, violated the Foreign Corrupt Practices Act by orchestrating nearly $15 million in improper payments to Chilean political figures and associates over seven years through a discretionary CEO account. These payments, supported by forged vendor documentation, were falsely recorded in SQM’s books and records, and Contesse lied to the company’s independent auditor and signed false certifications in SEC filings. He agreed to pay $125,000 to resolve the SEC’s charges without admitting or denying the findings, while SQM previously paid $30 million to settle parallel civil and criminal charges.
Former SQM CEO Patricio Contesse González agreed to pay $125,000 to settle SEC charges that he violated the Foreign Corrupt Practices Act by directing nearly $15 million in improper payments to Chilean political figures and their associates over a seven-year period. These payments were funneled through a discretionary CEO account and supported by fake vendor documentation submitted by third parties posing as legitimate suppliers. Contesse caused false accounting entries in SQM’s books and records, lied to the company’s independent auditor, and signed false certifications in SEC filings to conceal the misconduct. The SEC emphasized that corporate accountability begins at the top, noting that senior executives must be held responsible when they orchestrate systemic fraud. SQM previously paid $30 million in 2023 to resolve parallel civil and criminal charges brought by U.S. authorities. Contesse neither admitted nor denied the findings in the SEC’s order as part of the settlement. The investigation was conducted by SEC Enforcement Division staff William B. McKean, Tanya G. Beard, and Laurie J. Abbott.
Exhibits & Attached Documents (1)
Extracted insights
- $30.00M $30 million $10M–$100M
- $15.00M $15 million $10M–$100M
- $125K $125,000 $100K–$1M
- person charles e. cain
- agency sec’s investigation
- agency sec’s order
- agency Securities and Exchange Commission
- agency settlement without admitting or denying the findings in the sec’s order
- Securities and Exchange Commission Announced Former CEO of Chilean-based chemical and mining company Sociedad Química y Minera de Chile, S.A. (SQM) has agreed to pay $125,000 to resolve charges that he violated the Foreign Corrupt Practices Act (FCPA)
- SEC’s order Finds Contesse directed and authorized improper payments through a discretionary CEO account
- Contesse Caused Related false accounting entries in SQM’s books and records
- Contesse Lied to SQM’s independent auditor and signed false certifications in SQM’s filings
- Charles E. Cain Said Corporate culture starts at the top, and when misconduct is directed by the highest level of management it is critical that they are held accountable for their conduct
- Contesse Agreed to Settlement without admitting or denying the findings in the SEC’s order
- SEC’s investigation Conducted by William B. McKean, Tanya G. Beard and Laurie J. Abbott
The Securities and Exchange Commission today announced that the former CEO of Chilean-based chemical and mining company Sociedad Química y Minera de Chile, S.A. (SQM) has agreed to pay $125,000 to resolve charges that he violated the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, over the course of seven years, SQM’s then-CEO Patricio Contesse González caused SQM to make nearly $15 million in improper payments to Chilean political figures and others connected to them. Last year, SQM paid $30 million to settle parallel civil and criminal charges against the company. The SEC’s order against Contesse finds that he directed and authorized these improper payments through a discretionary CEO account. The payments were supported by fake documentation submitted to SQM by individuals and entities posing as legitimate vendors. Contesse caused the related false accounting entries in SQM’s books and records and also lied to SQM’s independent auditor and signed false certifications in SQM’s filings. “Corporate culture starts at the top, and when misconduct is directed by the highest level of management it is critical that they are held accountable for their conduct,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. Contesse agreed to the settlement without admitting or denying the findings in the SEC’s order. The SEC’s investigation was conducted by William B. McKean, Tanya G. Beard and Laurie J. Abbott.
The Securities and Exchange Commission today announced that the former CEO of Chilean-based chemical and mining company Sociedad Química y Minera de Chile, S.A. (SQM) has agreed to pay $125,000 to resolve charges that he violated the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, over the course of seven years, SQM’s then-CEO Patricio Contesse González caused SQM to make nearly $15 million in improper payments to Chilean political figures and others connected to them. Last year, SQM paid $30 million to settle parallel civil and criminal charges against the company. The SEC’s order against Contesse finds that he directed and authorized these improper payments through a discretionary CEO account. The payments were supported by fake documentation submitted to SQM by individuals and entities posing as legitimate vendors. Contesse caused the related false accounting entries in SQM’s books and records and also lied to SQM’s independent auditor and signed false certifications in SQM’s filings. “Corporate culture starts at the top, and when misconduct is directed by the highest level of management it is critical that they are held accountable for their conduct,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. Contesse agreed to the settlement without admitting or denying the findings in the SEC’s order. The SEC’s investigation was conducted by William B. McKean, Tanya G. Beard and Laurie J. Abbott.