Chemical and Mining Company in Chile Paying $30 Million to Resolve FCPA Cases
Sociedad Quimica y Minera de Chile S.A. (SQM) paid over $30 million to resolve FCPA violations after making nearly $15 million in bribes to Chilean political figures via fake vendor invoices over seven years, failing internal controls, and agreeing to a compliance monitor and self-reporting requirements.
SQM agreed to pay a $15 million penalty to the SEC and a $15.5 million penalty under a deferred prosecution agreement with the DOJ, totaling over $30 million, to resolve FCPA violations. The company made nearly $15 million in improper payments to Chilean political figures and their associates over a seven-year period, disguised as legitimate vendor invoices due to inadequate internal controls and oversight. SQM must retain an independent compliance monitor for two years and self-report to the SEC and DOJ for one year following the monitor’s term, as part of the resolution.
Sociedad Quimica y Minera de Chile S.A. (SQM) agreed to pay over $30 million to resolve parallel civil and criminal enforcement actions by the SEC and DOJ for violating the Foreign Corrupt Practices Act. Over a seven-year period, SQM made nearly $15 million in improper payments to Chilean political figures and their associates, using fake vendor documentation to disguise the bribes and bypass internal controls. The SEC found that SQM failed for years to exercise proper oversight over a key discretionary account used to facilitate these payments. As part of the resolution, SQM paid a $15 million penalty to the SEC and entered a deferred prosecution agreement with the DOJ, paying an additional $15.5 million penalty. SQM must retain an independent compliance monitor for two years and self-report to both regulators for one year after the monitor’s work concludes. The SEC’s investigation, led by William B. McKean, remains ongoing, with cooperation from the DOJ’s Criminal Division Fraud Section.
Exhibits & Attached Documents (1)
Extracted insights
- $30.00M $30 million $10M–$100M
- $15.50M $15.5 million $10M–$100M
- $15.00M $15 million $10M–$100M
- agency $15 million penalty to settle the sec’s charges
- agency sec investigation
- person william b. mckean
- Sociedad Quimica Y Minera De Chile S.A. (SQM) Agreed To Pay More Than $30 Million
- SQM Made Nearly $15 Million In Improper Payments To Chilean Political Figures And Others Connected To Them
- SQM Permitted Millions Of Dollars In Payments To Local Politicians
- SQM Agreed To Pay $15 Million Penalty To Settle The SEC’s Charges
- SQM Agreed To Pay $15.5 Million Penalty As Part Of A Deferred Prosecution Agreement Announced Today By The U.S. Department Of Justice
- SQM Agreed To Retain Independent Compliance Monitor For Two Years
- SQM Agreed To Self-Report To The SEC And Justice Department For One Year After The Monitor’s Work Is Complete
- SEC Investigation Is Being Conducted By William B. McKean
The Securities and Exchange Commission today announced that Chilean-based chemical and mining company Sociedad Quimica y Minera de Chile S.A. (SQM) agreed to pay more than $30 million to resolve parallel civil and criminal cases finding that it violated the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, SQM made nearly $15 million in improper payments to Chilean political figures and others connected to them. Most of the payments were made based on fake documentation submitted to SQM by individuals and entities posing as legitimate vendors. The payments occurred for at least a seven-year period. “SQM permitted millions of dollars in payments to local politicians while failing for years to exercise proper oversight over a key discretionary account and internal controls,” said Stephanie Avakian, Acting Director of the SEC Enforcement Division. SQM agreed to pay a $15 million penalty to settle the SEC’s charges and a $15.5 million penalty as part of a deferred prosecution agreement announced today by the U.S. Department of Justice. SQM agreed to retain an independent compliance monitor for two years and self-report to the SEC and Justice Department for one year after the monitor’s work is complete. The SEC’s investigation, which is continuing, is being conducted by William B. McKean. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section.
The Securities and Exchange Commission today announced that Chilean-based chemical and mining company Sociedad Quimica y Minera de Chile S.A. (SQM) agreed to pay more than $30 million to resolve parallel civil and criminal cases finding that it violated the Foreign Corrupt Practices Act (FCPA). According to the SEC’s order, SQM made nearly $15 million in improper payments to Chilean political figures and others connected to them. Most of the payments were made based on fake documentation submitted to SQM by individuals and entities posing as legitimate vendors. The payments occurred for at least a seven-year period. “SQM permitted millions of dollars in payments to local politicians while failing for years to exercise proper oversight over a key discretionary account and internal controls,” said Stephanie Avakian, Acting Director of the SEC Enforcement Division. SQM agreed to pay a $15 million penalty to settle the SEC’s charges and a $15.5 million penalty as part of a deferred prosecution agreement announced today by the U.S. Department of Justice. SQM agreed to retain an independent compliance monitor for two years and self-report to the SEC and Justice Department for one year after the monitor’s work is complete. The SEC’s investigation, which is continuing, is being conducted by William B. McKean. The SEC appreciates the assistance of the Department of Justice Criminal Division’s Fraud Section.