SEC charges Schnitzer chairman with bribery

The
Securities
and Exchange Commission (SEC) has charged Robert Philip, former chairman and
CEO of Portland, Oregon-based
Schnitzer
Steel Industries, with breaching anti-bribery provisions of the USA’s
foreign corrupt practices act (FCPA) by approving cash payments and other gifts
to officials at Chinese government-owned steel mills to entice their business.

Philip has agreed to return $US169,863.79 (?84,103.40) in bonuses and pay
$US16,536.63 in prejudgment interest and a $US75,000 civil penalty, and has also
agreed to an order directing him from future violations of the FCPA.

SEC’s complaint, filed in the Portland district court, alleges that, from at
least 1999 to 2004, Philip authorised payments of more than $US200,000 in cash
bribes and other gifts to managers at government-owned steel mills in China to
induce them to purchase scrap metal from Schnitzer.

The commission alleges Schnitzer generated more than $US96m in revenue, and
more than $US6.2m in profits, from sales to customers who had received the
improper payments. The complaint further alleges Philip authorised more than
$US1.7m in payments to managers of privately owned steel mills in both China and
South Korea, generating more than $US500m in additional revenue for the company.

Further reading:

Regulation: beware the long arm of the US

UK business unaware of US corruption laws