“Investors rightfully expect that the companies they invest in will not engage in bribery or fraud,” said Antonia Chion, Associate Director of the SEC’s Enforcement Division. “Issuers must implement effective controls for the selection and engagement of consultants and agents to ensure compliance with anti-bribery statutes.”
“Issuers need to ensure that their rules and controls address the specific bribery and corruption risks they face when operating in global markets with customers that are state-owned entities,” said Charles Cain, Chief of the Enforcement Division’s FCPA Unit. “It is not enough for a company merely to set up policies and procedures that are not enforced or are easily circumvented by employees.”
Finally, Panasonic consents to the SEC’s order finding that the company violated the anti-bribery, anti-fraud, books and records, internal accounting controls, and reporting provisions of the Securities Exchange Act of 1934. As a result, Panasonic agrees to pay approximately $143 million in disgorgement and pre-judgement interest. In a related matter, the U.S. Department of Justice announces PAC will pay a criminal penalty in excess of $137 million. The penalty is part of a deferred prosecution agreement relating to books and records violations of the FCPA.
