Settlements

ST-145
Dow Chemical Company
Dow Chemical Company
United States
Securities and Exchange Commission
India
2007
02/13
Unknown
Legal Person
Civil
Consent to Cease-and-Desist Order
Civil Penalty
$325,000.00
$0
$0
$325,000
$0
Art.16, Art.23, Art.26
Art. 1, Art. 2, Art. 7, Art. 8
Internal controls violations, Falsification of books and records
No admission or denial of allegations
No (Registration and Inspection)
According to the US Department of Justice Report to Congress, Appendix C "Summaries of Foreign Corrupt Practices Act Enforcement Actions by the United States, January 1, 1998 - September 30, 2010," Dow Chemical Company, at 96: (1) DE-Nocil, a subsidiary of Dow, made approximately $200,000 in improper payments to Indian government officials, including $39,700 to an official in India's Central Insecticides Board to expedite the registration of three DE-Nocil products. DE-Nocil made $435,000 in profits because of the accelerated registration, $329,295 of which went to Dow. (2) DE-Nocil payment of approximately $87,400 in small ($100 or less) payments to state-level agricultural inspectors to keep them from interfering in the sale of DE-Nocil products. (3) DE-Nocil payments to sales tax officials and customs officials, as well as improper gifts, travel, and entertainment to other government officials ($19,000), totalling more than $70,000. To resolve SEC charges, Dow Chemical agreed to cease-and-desist order and pay $325,000 in civil penalties. Resulting Civil/Administrative Enforcement Actions: SEC v. Dow Chemical Company (D.D.C., February 13, 2007); In the Matter of Dow Chemical Company (February 13, 2007), which noted that payments to Central Insecticides Board official was through use of consultants and unrelated companies (para 5); and the third set of improper payments included $11,800 to sales tax officials; $3,700 to excise tax officials; and $1,500 to customs officials. (para 10)