Schnitzer Steel Industries, Inc. / Robert W. Philip
Schnitzer Steel Industries, Inc.
United States
Securities and Exchange Commission
China, South Korea
Consent to Final Judgment
Disgorgement of Bonuses, Prejudgment Interest, Civil Penalty
Art. 1, Art. 8
Bribery of Foreign Officials, Aiding and Abetting Schnitzer Steel Industries' Bribery of Foreign Officials; Aiding and Abetting Schnitzer Steel Industries' Internal Controls Violatons, Aiding and Abetting Schnitzer Steel Industries' Falsification of Books and Records
No admission or denial of alleged offenses
According to the US Securities and Exchange Commission Litigation Release, on December 13, 2007, the Commssion "charged the former Chairman and CEO of Schnitzer Steel Industries, Inc., with violating anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) by approving cash payments and other gifts to officials at Chinese government-owned steel mills to entice their business. [ ] The Commission's complaint, filed in U.S. district court in Portland, Ore., alleges that from at least 1999 through 2004, Philip authorized payment of more than $200,000 in cash bribes and other gifts to managers at government-owned steel mills in China to induce them to purchase scrap metal from Portland-based Schnitzer. The Commission alleges that Schnitzer generated more than $96 million in revenue, and more than $6.2 million in profits, from sales to customers who had received the improper payments. The complaint further alleges that Philip authorized more than $1.7 million in payments to managers of privately owned steel mills in both China and South Korea, generating more than $500 million in additional revenue for the company." (Source: US Securities and Exchange Commission Litigation Release No. 20397 / December 13, 2007, Securities and Exchange Commission v. Robert W. Philip, Case No. CV 07-1836 (MO) (D. Or. filed December 13, 2007), "SEC Charges Former Chairman/CEO of Schnitzer Steel for Authorizing Cash Bribes to Foreign Officials.")