By Jonathan Stempel
(Reuters) -Deere agreed to pay $9.93 million to settle U.S. Securities and Exchange Commission charges that a Thailand subsidiary offered massage parlor services and other improper gifts to win government business, and engaged in commercial bribery.
Tuesday’s settlement resolves charges that high-level managers and employees at the agricultural equipment and heavy machinery company’s Wirtgen Thailand unit made improper payments to officials at entities including the Royal Thai Air Force and Thailand’s Department of Highways.
The SEC said payments were made though the unit’s code of conduct prohibited giving “absolutely anything” to improperly influence government officials.
Payments made from late 2017 through 2020 allegedly took the form of cash, meals, sham consulting fees, sightseeing ventures disguised as “factory visits” in Switzerland and other European countries, and massage parlor “entertainment.”
The SEC said Deere (NYSE:DE)’s conduct violated the books and records and internal accounting controls provisions of a federal anti-bribery law, the Foreign Corrupt Practices Act.
Deere’s payment includes a $4.5 million civil fine, the disgorgement of $4.34 million of improper benefits, and $1.09 million of interest.
It also reflected Moline, Illinois-based Deere’s cooperation with the SEC, termination of employees involved in misconduct, and upgrades to compliance procedures and anti-bribery training.
“These allegations represent a clear violation of our company policies and ethical standards,” Deere said in a statement. “They are in direct conflict with our core values–particularly our commitment to integrity–and we strongly condemn such practices.”
