Universal Corporation ("Universal") was a holding company incorporated in the state of Virginia with headquarters in Richmond, Virginia. Universal operated primarily through its wholly-owned U.S. subsidiary, Universal Leaf Tobacco Company, Incorporated ("Universal Leaf') and domestic and international subsidiaries of Universal Leaf. Universal and its subsidiaries purchased, processed and sold leaf tobacco throughout the world. Universal's common stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange.
Between 2000 and 2004, Universal subsidiaries paid approximately $800,000 to bribe officials of the government-owned Thailand Tobacco Monopoly ("TTM") in exchange for securing approximately $11.5 million in sales contracts for its subsidiaries in Brazil and Europe. From 2004 through 2007, Universal subsidiaries made a series of payments in excess of $165,000 to government officials in Mozambique through corporate subsidiaries in Belgium and Africa. Among other things, the payments were made to secure an exclusive right to purchase tobacco from regional growers and to procure legislation beneficial to the Company's business. In addition, between 2002 and 2003, Universal subsidiaries paid $850,000 to high ranking Malawian government officials. Those payments were authorized by, among others, two successive regional heads for Universal's African operations.
On August 6, 2010, the SEC filed a three count Complaint in the District of Columbia against Univeral alleging violations of the anti-bribery, books & records, and internal controls provisions of the FCPA. On the same day, Univeral entered into a consent agreement for entry of final judgment with the SEC, and on August 25, 2010, the court entered final judgment against Universal. The court enjoined Universal from violating the FCPA, required the company to disgorge $3,125,905, representing profits gained as a result of the conduct alleged in the complaint, plus prejudgment interest of $1,455,371.51, and required the company to hire an independent monitor for a term of three years.
