The SEC's recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls.
Deere's bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, See more +
The SEC's recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls.
Deere's bribery scheme involved its Thailand subsidiary, Wirtgen Thailand, and various improper payments to government officials, including cash, sham consulting fees, extravagant “factory visit” trips to foreign countries, meals, entertainment at massage parlors, and other payments. Wirtgen's illegal payments were made to officials at multiple government entities, including the Royal Thai Air Force and the Department of Highways to secure valuable business contracts.
Deere acquired Wirtgen, a German company, in 2017. Wirtgen's schemes were executed by Wirtgen Thailand, Wirtgen subsidiary, through former high level regional managers and employees. The SEC specifically cited an important cause -- Deere's failure to integrate the full integration of the acquired subsidiary, Wirtgen, into its compliance program and control environment. See less -
