Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-22102
Name of Prosecuting Attorneys:
Michelle L. Ramos, SEC Headquarters
Denise Hansberry, SEC Headquarters
Sonali Singh, SEC Headquarters
Tracy L. Price, SEC Headquarters
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Deere & Company, headquartered in Moline, Illinois, was a global manufacturer of agricultural machinery and heavy equipment. Deere’s common stock was registered with the SEC and traded on the New York Stock Exchange under ticker symbol DE.
Wirtgen Group was a privately held company headquartered in Germany which manufactured road equipment. In December 2017, Deere acquired Wirtgen, which subsequently became a wholly owned subsidiary of Deere. Deere conducted business in Thailand through Wirtgen’s subsidiary, Wirtgen Thailand.
According to the documents in this case, between late 2017 and 2020, Wirtgen Thailand employees bribed Thai government officials with the Royal Thai Air Force, the Department of Highways, and the Department of Rural Roads to win numerous government contracts. Wirtgen Thailand also engaged in bribery of a private company to win sales with it. Among the bribes to the government officials, Wirtgen Thailand employees provided direct and indirect cash payments, extensive massage parlor visits, and international travel. In all, Wirtgen Thailand made approximately $4.3 million in profits as a result of these bribes, and none of the improper payments were accurately recorded in Deere’s books and records.
In a settled administrative proceeding initiated on September 10, 2024, the SEC ordered Deere to cease and desist violations of the books and records and internal controls provisions of the FCPA. Under terms of the settlement, Deere agreed to pay disgorgement of $4,343,401 plus prejudgment interest of $1,086,954 as well as a civil monetary penalty in the amount of $4,500,000 for a total of $9,930,355.
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