Smith & Wesson Bribed Pakistani Police
WASHINGTON (CN) - Smith & Wesson will pay $2 million to settle charges of bribing foreign officials to try to get military and law-enforcement supply contracts, the SEC said Monday.
"Smith & Wesson, which profited by more than $100,000 from the one contract that was completed before the unlawful activity was identified, has agreed to pay $2 million to settle the SEC's charges," the SEC said in a statement announcing the settled complaint.
The SEC said the gun maker offered bribes in "Pakistan, Indonesia and other foreign countries."
It said Smith & Wesson "authorized (its) agent" to give more than $11,000 worth of guns to Pakistani police of officials, along with "additional cash payments," and won a contract to sell 548 pistols to Pakistani police for a profit of $107,852.
Smith & Wesson agreed to disgorge the $107,582, plus $21,040 in interest, and pay a $1.9 million penalty. "The company also terminated its entire international sales staff," the SEC said.