December 20, 2013

SEC Charges ADM With FCPA Violations in Ukraine

The SEC has charged global food processor company Archer-Daniels-Midland for failing to prevent illicit payments made by foreign subsidiaries to Ukrainian government officials in violation of the Foreign Corrupt Practices Act ("FCPA"). An SEC investigation found that the company's subsidiaries in Germany and Ukraine paid bribes through intermediaries to secure the release of value-added tax ("VAT") refunds. The payments were then concealed by improperly recording the transactions in accounting records as insurance premiums and other purported business expenses. The SEC stated that the company had insufficient anti-bribery compliance controls.

See: SEC Complaint; Press Release.Related News: SEC DOE Co-Director Discusses the Foreign Corrupt Practices Act (with Avergun Comment) (November 20, 2013); SEC Charges Security Provider with FCPA Violations in China, Indonesia and Russia (October 22, 2013); SEC Charges Weatherford International with FCPA Violations (November 27, 2013).

Premium Content

Available only to Premium subscribers.