The maker of John Deere tractors has agreed to pay a $10 million penalty to the US government to settle charges that it lavished Thailand government officials with extravagant trips and visits to massage parlors — bribes that netted its subsidiary more than $4 million in profit.
Deere & Co. came to an agreement on Tuesday with the Securities and Exchange Commission, which charged the company with violating the US Foreign Corrupt Practices Act.
The Moline, Ill.-based company did not admit to any wrongdoing nor did it deny any of the regulator’s findings, according to a statement released by the agency.
The SEC alleged that Deere & Co. paid out the bribes through its wholly owned subsidiary, Wirtgen Thailand.
According to the agency, Wirtgen Thailand employees bribed Thai government officials with the Royal Thai Air Force as well as other departments between 2017 and 2020 in order to win several contracts.
“The order finds that the bribes included cash payments, massage parlor visits, and international travel for the government officials and private company employees,” the SEC said.
These bribes netted Wirtgen Thailand around $4.3 million in profits, the SEC alleged. Deere & Co. accountants “inaccurately recorded” these profits as legitimate expenses, according to the agency.
“After acquiring Wirtgen Thailand in 2017, Deere failed to timely integrate it into its existing compliance and controls environment, resulting in these bribery schemes going unchecked for several years,” said Charles E. Cain, who heads the SEC Enforcement Division’s FCPA Unit.
“This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place.”
The Post has sought comment from Deere & Co.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
