LOS ANGELES (CN) - Adhesive label-maker Avery Dennison Corp. will pay $318,000 to settle an SEC complaint accusing it of bribing Chinese officials with kickbacks, sightseeing trips and cash.
Avery China, based in Shanghai, is an indirect subsidiary of Avery Dennison, a Delaware-based company headquartered in Pasadena, Calif.
From 2002-2005 Avery China's Reflective Division promised or paid bribes to Chinese government officials in exchange for help getting business, the SEC says. And Avery failed to record the payments and gifts in its books, the SEC said.
An Avery manager won a contract to install reflective graphics on 15,400 Chinese police cars by kicking back $41,000 as a "consulting fee," but the company discovered the scheme and stopped it before the payoff, the SEC says.
Paxar Corp., a New York Stock Exchange-listed company Avery acquired in 2007, also is accused of making illegal payments to officials in foreign countries.
The bribes or planned bribes totaled $51,000, in China, Pakistan and Indonesia, the SEC said.
Avery has agreed to pay more than $300,000 with interest to settle allegations of corrupt practices without admitting or denying wrongdoing.
Avery spokesman David Frail told The Associated Press that the company reported the shady practices to the SEC and the U.S. Department of Justice as soon as it discovered them.
Subscribe to Closing Arguments
Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.
Additional Reads
-
Alaska, Hawaiian Airlines April 17, 2024 -
-
Contributor-Test-Post-2024-04-12 April 12, 2024 -
