More than two years after Goodyear Tire & Rubber Co. self-reported its wrongdoing to securities regulators,\u00a0the company has agreed to pay $16 million to settle foreign-bribery charges.<\/p>\n
Goodyear subsidiaries had paid $3.2 million in bribes to land tire sales in Kenya and Angola.<\/p>\n
\u201cAfter receiving information about the bribes, Goodyear promptly halted the improper payments and reported the matter to commission staff,\u201d the order states. \u201cGoodyear also provided significant cooperation with the commission\u2019s investigation.\u201d<\/p>\n
Whether to self-report Foreign Corrupt Practices Act violations has long been a hot topic for the defense bar. For Goodyear, represented by Jones Day partner Joan McKown, coming clean seems to have paid off\u2014at least compared to the penalty imposed on Avon Products Inc. in December.<\/p>\n
Avon paid $135 million to settle civil and criminal charges after allegedly making $8 million worth of payments in cash, gifts, travel and entertainment to gain access to Chinese officials.\u00a0 The cosmetic company\u2019s initial response was to instruct its audit team \u201cnot to create any electronic documents, not to send any e-mails regarding the follow-up review, and not to use the term \u2018FCPA\u2019 in any written document.\u201d<\/p>\n
Goodyear, by contrast, was lauded for \u201cvoluntarily producing documents and reports and other information from the company\u2019s internal investigation, and promptly responding to commission staff\u2019s requests for information and documents. These efforts assisted the commission in efficiently collecting evidence including information that may not have been otherwise available to the staff.\u201d<\/p>\n
The $16 million fine consisted of $14 million in disgorgement and $2 million in interest.\u201d<\/p>\n
Goodyear responded by divesting its ownership interest in its indirect Kenyan subsidiary, Treadetters, and cut off all business dealings with the company. In Angola, after halting the improper payments, its subsidiary lost its largest customer. Goodyear is now in the process of divesting the subsidiary.<\/p>\n
Goodyear also took disciplinary actions against employees, expanded its anti-corruption training, instituted regular audits focused on corruption risks, put in place a new regional management structure and created a new senior position of vice president of compliance and ethics, among other steps.\u00a0 Goodyear did not admit or deny wrongdoing.<\/p>\n
\u201cThis settlement ensures that Goodyear must forfeit all of the illicit profits from business obtained through bribes to foreign officials as well as employees at commercial companies in Angola and Kenya,\u201d Scott Friestad, associate director of the SEC\u2019s Enforcement Division, said in a written statement.<\/p>\n
Goodyear in a statement said that the company has “a comprehensive anti-corruption compliance program and continues to improve and enhance its ability to monitor, detect, investigate and address potential issues.”<\/p>\n
More than two years after Goodyear Tire & Rubber Co. self-reported its wrongdoing to securities regulators,\u00a0the company has agreed to pay $16 million to settle foreign-bribery charges. Goodyear subsidiaries had paid $3.2 million in bribes to land tire sales in … Continue reading ![\"Produced](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/02\/Produced-by-Goodyear-Tire-and-Rubber-300x242.jpg\")
<\/a>Felix the Cat, 1927 Macy’s Day Parade, produced by Goodyear Tire & Rubber<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"