Settlements

ST-17
AGCO Corporation
AGCO Corporation
United States
Securities and Exchange Commission
Iraq (UN Oil-for-Food)
2009
09/30
Denmark
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Prejudgment Interest, Civil Penalty
$18,307,393.00
$13,907,393
$2,000,000
$2,400,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Falsification of books and records, Internal controls violations
No admission or denial of alleged offenses
Yes
According to the US Securities and Exchange Commission's Litigation Release, the SEC's "complaint alleges that from 2000 through 2003, certain AGCO subsidiaries made approximately $5.9 million in kickback payments in connection with their sales of equipment to Iraq under the United Nations Oil for Food Program (the "Program"). The kickbacks were characterized as "after sales service fees" ("ASSFs"), but no bona fide services were performed. The Program was intended to provide humanitarian relief for the Iraqi population, which faced severe hardship under international trade sanctions. The Program required the Iraqi government to purchase humanitarian goods through a U.N. escrow account; however, AGCO's subsidiaries' kickbacks diverted funds out of the escrow account and into Iraqi-controlled accounts at banks in Jordan." (Source: US Securities and Exchange Commission, Litigation Release No. 21229 / September 30, 2009, SEC v. AGCO Corporation, Civil Action No. 1:09-CV-01865-RMU (D.D.C.), "SEC Files Settled Books and Records and Internal Controls Charges Against AGCO Corporation For Improper Payments to Iraq Under the U.N. Oil for Food Program - AGCO Agrees to Pay Over $18.3 Million in Disgorgement, Interest, and Penalties.") Please note that as part of its settlement with the SEC, AGCO Corporation did not admit or deny the agency's allegations against it.