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Univ. of Toledo College of Law

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Thursday, April 29, 2010

Fomrer Tobacco Company Execs Settle FCPA Charges

On April 28, 2010, the SEC brought another FCPA complaint, this time charging four former employees of Dimon, Inc., now Alliance One International, Inc.  All four defendants agreed to settle the Commission's charges against them.  According to the complaint, during the period 1996 through 2004, Dimon's subsidiary in Kyrgyzstan paid more than $3 million in bribes to various Kyrgyzstan government officials to purchase Kyrgyz tobacco for resale to Dimon's largest customers. In addition, the Commission's complaint alleges that, from 2000 to 2003, Dimon paid bribes of approximately $542,590 to government officials of the Thailand Tobacco Monopoly in exchange for obtaining approximately $9.4 million in sales contracts.

Without admitting or denying the allegations in the Commission's complaint, defendants Elkin, Myers, Reynolds, and Williams consented to the entry of final judgments permanently enjoining each of them from violating the anti-bribery provisions of the FCPA, codified as Section 30A of the Securities Exchange Act of 1934 ("Exchange Act"), and aiding and abetting violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. Defendants Myers and Reynolds also agreed to pay civil monetary penalties of $40,000 each.  The settlement with defendant Elkin takes into account his cooperation with the Commission's investigation.

http://lawprofessors.typepad.com/securities/2010/04/fomrer-tobacco-company-execs-settle-fcpa-charges.html

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