The John Deere tractor maker has agreed to pay a $10 million fine to the U.S. government for allegedly lavishing luxury trips and visits to massage parlours on Thai government officials, reaping more than $4 million in bribes from its subsidiaries.
Deere & Co. reached a settlement on Tuesday with the U.S. Securities and Exchange Commission, which had charged the company with violating the Foreign Corrupt Practices Act.
The Moline, Illinois-based company did not admit to any wrongdoing or deny the regulators' findings, it said. Statement issued by authorities.
The SEC alleged that Deere paid the bribes through its wholly owned subsidiary, Wiltgen Thailand.
According to the agency, employees of Wiltgen Thailand bribed Thai government officials in the Royal Thai Air Force and other departments to win multiple contracts between 2017 and 2020.
“The order found that the bribes included cash payments, visits to massage parlors, and international travel to government officials and employees of private companies,” the SEC said.
The SEC alleges that those bribes netted about $4.3 million for Wiltgen Thailand, which the SEC says was “inaccurately recorded” by Deere & Company accountants as legitimate expenses.
“Following its acquisition of Wiltgen Thailand in 2017, Deere failed to integrate into the existing compliance and control environment in a timely manner, and as a result, these bribery schemes continued unchecked for several years,” said Charles E. Cain, who heads the SEC Enforcement Division's FCPA Unit.
“This measure calls on companies to quickly ensure that newly acquired subsidiaries have all the necessary internal accounting control processes in place.”
The Post has reached out to Deere for comment.
