According to the SEC’s orders instituting settled administrative proceedings, the company's overseas subsidiaries made improper payments to foreign government officials for a dozen years to obtain or retain business in Angola, Bangladesh, China, Egypt, Indonesia, and Thailand. General Cable’s weak internal controls also failed to detect improper inventory accounting at its Brazilian subsidiary, causing the company to materially misstate its financial statements from 2008 to the second quarter of 2012. “The company operated globally without the effective compliance programs and internal controls necessary to proactively address corruption risks and accounting errors,” said Stephanie Avakian, Acting Director of the SEC Enforcement Division.
In the FCPA case, the company agreed to pay more than $55 million in disgorgement and interest to the SEC as well as a penalty of nearly $20.5 million in a non-prosecution agreement announced today by the Justice Department. The company must self-report its FCPA compliance efforts for the next three years. The company neither admitted nor denied the SEC’s findings while agreeing to pay the $6.5 million penalty to settle the accounting violations. The SEC considered the company's self-reporting, cooperation, and remedial acts when determining the settlements.
To read the entire SEC Press Release please follow this link: $75M to Resolve SEC AND DOJ Investigations