Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-14305
Name of Prosecuting Attorneys:
Eugene H. Bull, SEC Headquarters
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Voluntary disclosure
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Ball Corporation, an Indiana corporation based in Broomfield Colorado, was a manufacturer of metal packaging for beverages, foods and household products as well as aerospace and other technological services to commercial and governmental customers. The Company employed approximately 14,000 people in more than ninety locations worldwide. Its stock was registered with the SEC and listed on the New York Stock Exchange. Ball acquired Argentine company Formametal, S.A. on March 27, 2006, as part of an acquisition of a larger U.S. aerosol container business. Formametal, a wholly-owned subsidiary of Ball, manufactures aerosol cans. Formametal’s financial results are reported on a consolidated basis in Ball’s financial statements.
From July 2006 through October 2007, Ball, through its Argentine subsidiary Formametal, S.A., offered and paid at least ten bribes, totaling at least $106,749, to employees of the Argentine government to secure the importation of prohibited used machinery and the exportation of raw materials at reduced tariffs. Some payments were specifically authorized by Formametal’s President, while in other instances, he appeared to have been aware that the unlawful payments were occurring and acquiesced to them. In some instances, the President learned about the opportunity to make a bribe from the Vice President of Institutional Affairs, who would then make the arrangements for the bribe without providing details to the President. These payments were disguised to appear as legitimate business expenses in Formametal’s books and records and included in Ball’s consolidated financial results reported for fiscal year 2006 and the first three quarters of 2007.
On March 24, 2011, the SEC instituted cease and desist proceedings against Ball alleging violations of the books & records and internal controls provisions of the FCPA. Ball consented to the proceedings but neither admitted nor denied the allegations in the proceedings. Under the terms of the proceedings, the SEC ordered Ball to cease and desist violating the books & records and internal controls provisions of the FCPA and ordered the company to pay a civil fine of $300,000.
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