MOLINE, Ill. — Deere & Company will pay almost $10 million to resolve an SEC investigation into a bribery scheme involving one of the company's subsidiaries, SEC officials announced.
The investigation centered around claims that Wirtgen Thailand, a wholly owned Deere subsidiary, violated the Foreign Corrupt Practices Act by paying bribes to Thai government officials between 2017 to 2020. Bribes included cash payments, visits to massage parlors and paying for international travel for the officials. According to the SEC, Wirtgen Thailand made approximately $4.3 million in profit due to these bribes, which were logged as legitimate expenses in Deere's recordkeeping.
“After acquiring Wirtgen Thailand in 2017, Deere failed to timely integrate it into its existing compliance and controls environment, resulting in these bribery schemes going unchecked for several years,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. “This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place.”
Deere consented to a cease-and-desist order from the SEC without admitting or denying the agency's findings. The company was ordered to pay $5.4 million for disgorgement and prejudgment interest and an additional civil penalty of $4.5 million.