Armor Holdings Inc.
Armor Holdings, Inc.
United States
Department of Justice
United Nations
Legal Person
Non-Prosecution Agreement
Criminal Fine
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Failure to maintain books and records, Internal controls violations
Failure to maintain books and records, Internal controls violations
According to the US Department of Justice Press Release regarding its Non-Prosecution Agreement with Armor Holdings, the company "accepts responsibility for its subsidiary's payment of more than $200,000 in commissions to a third-party sales agent, a portion of which it knew was to be passed on to a U.N. procurement official to induce the official to award two separate U.N. contracts to Armor?s subsidiary. The contracts were for the sale of approximately $6 million of body armor. Armor also acknowledged that it falsely recorded the commission payments on its books and records. In addition, Armor admitted that it kept off its books and records approximately $4.4 million in additional payments to agents and other third-party intermediaries used by its Products Group to assist it in obtaining business from foreign government customers. Armor acknowledged that it failed to devise and maintain an appropriate system of internal accounting controls. In a related matter, Armor reached a settlement today with the U.S. Securities and Exchange Commission (SEC) and agreed to pay more than $5.69 million in disgorgement of profits, including pre-judgment interest, and a civil money penalty." (Source: US Department of Justice Press Release, "Armor Holdings Agrees to Pay $10.2 Million Criminal Penalty to Resolve Violations of the Foreign Corrupt Practices Act," July 13, 2011.)