Last week, Tyson Foods Inc. agreed to pay a $4 million criminal penalty and $1.2 million in disgorgement and pre-judgment interest to settle charges related to illegal payments by company representatives to government-employed inspection veterinarians in Mexico and a cover-up of the payments. The Department of Justice and Securities and Exchange Commission initiated action against Tyson based on violations of the Foreign Corrupt Practices. Act. According to The Department of Justice Assistant Attorney General Breuer, “Tyson Foods used false books and sham jobs to hide bribe payments made to publicly-employed meat processing plant inspectors in Mexico.” Robert Khuzami, Director of the SEC’s Division of Enforcement stated that “Tyson and its subsidiary committed core FCPA violations by bribing government officials through no-show jobs and phony invoices, and by having a lax system of internal controls that failed to detect or prevent the misconduct,” The SEC said “it was not until two years after Tyson Foods officials first learned about the illicit payments that its counsel instructed Tyson de Mexico to cease making the payments."
As part of the settlement, Tyson, headquartered in Springdale, Arkansas, admitted that employees at subsidiaries and agents made improper payments to government-employed veterinarians who inspected two of its chicken processing plants in Gomez Palacio, Mexico. In addition to the monetary penalties, Tyson must implement rigorous internal controls and cooperate fully with the Department of Justice and Securities and Exchange Commission.
Click HERE to view the complaint filed by the SEC.
Sources
Securities and Exchange Commissions. (2011, February). SEC Charges Tyson Foods with FCPA Violations. Retrieved from http://www.sec.gov/news/press/2011/2011-42.htm
Department of Justice. (2011, February). Tyson Foods Inc. Agrees to Pay $4 Million Criminal Penalty to Resolve Foreign Bribery Allegations Retrieved from http://www.justice.gov/opa/pr/2011/February/11-crm-171.html
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