Sept 10 (Askume) – Deere DE.N agreed to pay $9.93 million to settle U.S. Securities and Exchange Commission charges that one of its Thai subsidiaries misused government business to provide massage parlor services and other improper gifts for financial gain and was accused of engaging in commercial activities.
Tuesday’s settlement resolves allegations that senior executives and employees of the Thai unit of agricultural equipment and heavy machinery company Wirtgen made improper payments to officials of entities including the Royal Thai Air Force and the Thai Highway Department .
The SEC said the payments were made despite the entity’s code of conduct prohibiting the offering of “anything” to improperly influence government officials.
The payments, made between late 2017 and 2020, allegedly included cash, meals, consulting fees, trips to Switzerland and other European countries disguised as “factory tours,” and “entertainment” at massage parlors.
The SEC said Deere’s conduct violated federal anti-bribery laws, the accounting and records and internal accounting controls provisions of the Foreign Corrupt Practices Act.
Deere’s payment includes a $4.5 million civil penalty, a disgorgement of $4.34 million in ill-gotten gains and interest of $1.09 million.
It also reflects Moline, Illinois-based Deere’s cooperation with the Securities and Exchange Commission, dismissing employees involved in misconduct and upgrading compliance procedures and anti-bribery training.
“These allegations are a clear violation of our company policies and ethical standards,” Deere said in a statement. “These actions are in direct conflict with our core values, particularly our commitment to integrity, and we strongly condemn such attitudes.”
