Settlements

ST-122
Chiquita Brands International, Inc.
Chiquita Brands International, Inc.
United States
Securities and Exchange Commission
Colombia
2001
10/03
Unknown
Legal Person
Civil
Consent to Cease-and-Desist Order
Civil Penalty
$100,000.00
$0
$0
$100,000
$0
Art.16, Art.26
Art. 1, Art. 2, Art. 8
Internal controls violations, Falsification of books and records
No admission or denial of allegations
No (Customs)
According to the US Securities and Exchange Commission Litigation Release, on October 3, 2007, the agency announced that it had filed a settled complaint against Chiquita Brands, alleging that the company had violated the books and records and internal controls provisions of the FCPA as a result of the conduct of its Colombian subsidiary, C.I. Bananos de Exportaction, S.A (Banadex). The SEC had alleged that Banadex's chief administrative officer authorized the company's customs broker, as well as Banadex's security officer and controller, to make a corrupt payment of $30,000 to local customs officials to secure the renewal of the port facility's license. The SEC also alleged that Banadex's books and records incorrectly identified the two installment payments, made in 1996 and 1997. Without admitting or denying the Commission's findings, Chiquita consented to the entry of an order that requires Chiquita to cease and desist from violating those provisions. The Commission also filed a settled complaint in federal court seeking entry of a consent order requiring Chiquita to pay a $100,000 civil penalty. Chiquita settled the action without admitting or denying the Commission's allegations. (Source: US Securities and Exchange Commission Litigation Release No. 17169 / October 3, 2001, SEC v. Chiquita Brands International, Inc., Civ. Action No. 1:01CV02079 (D.D.C.) (filed October 3, 2001), "SEC Settles Case against Chiquita Brands International, Inc.")