Settlements

ST-364
Tyson Foods, Inc.
Tyson Foods, Inc.
United States
Securities and Exchange Commission
Mexico
2011
02/10
Unknown
Legal Person
Civil
Consent to Permanent Injunction
Disgorgement of Profits, Prejudgment Interest
$1,214,477.00
$880,786
$333,691
$0
$0
Art.16, Art.26
Art.1, Art. 2, Art. 8
Bribery of foreign officials, Falsification of books and records, Internal controls violations
No admission or denial of allegations
NO (INSPECTORS)
According to the US Department of Justice Press Release, "As part of a deferred prosecution agreement with the department, Tyson acknowledged responsibility for the actions of its subsidiaries, employees and agents who made improper payments to government-employed veterinarians who inspected two of its chicken processing plants in Gomez Palacio, Mexico. [ ] According to documents filed in court, Tyson's Mexican subsidiary, Tyson de Mexico, paid approximately $90,000 between 2004 and 2006, to two publicly-employed veterinarians who inspected its Mexican plants, resulting in profits of approximately $880,000. The payments were made both directly to the veterinarians and indirectly through their wives, who Tyson de Mexico listed on its payroll, although neither performed any services for Tyson. According to court documents, the bribe payments were made to keep the veterinarians from disrupting the operations of the meat-production facilities. When payments to the spouses were terminated in 2004, Tyson representatives agreed to increase the amount paid to the veterinarians to match the amount previously paid to their spouses." (Source: US Department of Justice Press Release, "Tyson Foods Inc. Agrees to Pay $4 Million Criminal Penalty to Resolve Foreign Bribery Allegations," February 10, 2011.) The US Securities and Exchange Commission made the same allegations and also alleged that the company failed to keep accurate books and records and to implement a system of effective internal controls to prevent improper payments. (Source: SEC v. Tyson Foods, Inc., Case No. 1:11-cv-00350 (D.D.C.), Complaint filed February 10, 2011.) Without admitting or denying the SEC's allegations, Tyson Foods consented to the entry of a final judgment ordering disgorgement of profits and prejudgment interest and enjoining the company from future FCPA violations. (Source: SEC v. Tyson Foods, Inc., Case No. 1:11-cv-00350 (D.D.C.), Final Judgment filed February 15, 2011.)