Kentucky-based General Cable Corp., which offers aluminum, copper, and fiber-optic cable solutions, announced on Thursday that it has entered into agreements with the Securities and Exchange Commission and the Department of Justice to end the agencies’ investigations relating to the U.S. Foreign Corrupt Practices Act and the SEC’s separate accounting investigation related to the company’s financial restatements from 2013 and 2014. General Cable reports it will pay fines, disgorgement, and pre-judgment interest to the SEC and DOJ in total of $82.3 million.
The DOJ says General Cable Corp. entered into a non-prosecution agreement and will pay a $20 million penalty (reflecting a 50 percent reduction off the bottom of U.S. sentencing guidelines) to resolve the government’s investigation into improper payments to government officials in Angola, Bangladesh, China, Indonesia, and Thailand to “corruptly gain business in violation of the Foreign Corrupt Practices Act.”
“General Cable paid bribes to officials in multiple countries in a scheme that involved a high-level executive of the company and resulted in profits of more than $50 million worldwide,” Assistant Attorney General Leslie R. Caldwell, says. “But General Cable also voluntarily self-disclosed this misconduct to the government, fully cooperated, and remediated. This resolution demonstrates the very real upside to coming in and cooperating with federal prosecutors and investigators. It also reflects our ongoing commitment to transparency.”
In a statement, General Cable President and CEO Michael T. McDonnell says: “General Cable is committed to conducting our business ethically and with the utmost integrity, and over the past two years, we have invested significant time and resources to implement a world-class compliance program. At the same time, we have transformed our business strategy under an entirely refreshed strategic leadership team committed to maintaining a strong performance and compliance culture. We are a different and better company today as a result of these actions.”
The SEC resolution is said to encompass both the FCPA issues and the separate accounting and disclosure issues that were the subject of the company’s prior restatements. General Cable reports it will disgorge profits of approximately $51.2 million and pay pre-judgment interest of approximately $4.1 million in connection with the FCPA matter, and pay a civil penalty in connection with the restatement-related matters of $6.5 million. No criminal charges will be brought against General Cable, provided it complies with its obligations under the agreement.
Filed Under: Industry regulations, Cables + cable management