SEC Slaps Hand of Archer-Daniels-Midland
URBANA, Ill. (CN) - Archer-Daniels-Midland paid $22 million in bribes to make $33 million in profits in the Ukraine, the SEC said in a settled complaint.
The SEC said ADM's foreign subsidiaries paid the $22 million in bribes to get more than $100 million in value-added tax refunds, which were concealed as insurance premiums and other business expenses.
"ADM had insufficient anti-bribery compliance controls and made approximately $33 million in illegal profits as a result of the bribery by its subsidiaries," the SEC said in a statement.
The company will pay $36 million to settle the SEC charges, and another $18 million to settle parallel criminal charges, the SEC said.
The SEC called Archer-Daniels-Midland's anti-bribery controls "lackluster."
Archer-Daniels-Midland, a food processor and commodities trader, reported $46.7 billion in net income for the 6 months ending Dec. 31, 2012.
That would make its combined civil and criminal fines for this case 0.057 percent of its annual income.