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In the Matter of General Cable Corporation

 
:
General Cable Corporation
:
SEC Civil
:
December 29, 2016
:
In the Matter of General Cable Corporation
:
In the Matter of General Cable Corporation, Admin. Proc. File No. 3-17755 (Dec. 29, 2016)
:
Wholesale Trade - Durable Goods
:
Angola, Bangladesh, China, Egypt, Indonesia, Thailand
:
2001; 2002; 2003; 2004; 2005; 2006; 2007; 2008; 2009; 2010; 2011; 2012; 2013; 2014; 2015
:
Unnamed employees and officials from state-owned entities in Angola, Thailand, Indonesia, Bangladesh, China, and Egypt.
:
General Cable Corporation is a publicly-traded company based in Highland Heights, Kentucky. General Cable is a global manufacturer of copper, aluminum, and fiber optic wire and cable products. General Cable’s common stock is registered with the Commission and trades on the New York Stock Exchange.

According to the SEC, between 2003 and 2015, multiple General Cable subsidiaries made improper payments worth approximately $19 million to employees or officials at various state-owned enterprises located in Angola, Thailand, China, Indonesia, Bangladesh, and Egypt. The SEC claims that the alleged schemes generated illicit profits in excess of $50 million. According to the SEC, General Cable’s subsidiaries made the improper payments through local agents and distributors, in the form of sales commissions, rebates, discounts, and other fees, who then passed along the payments to foreign government officials. The SEC also alleged that the improper payments were made despite numerous red flags that the agents and distributors were bribing foreign officials. In some instances, the SEC claims that even when General Cable became aware of the alleged schemes, it failed to take appropriate action to investigate and ultimately stop the improper practices.

On December 29, 2016, the SEC announced that it had resolved an FCPA enforcement action against General Cable for violations of the FCPA’s anti-bribery, books-and-records, and internal controls provisions. According to the SEC’s cease-and-desist order, General Cable was required to pay disgorgement of $51,174,237 and prejudgment interest of $4,107,660, for a total sanction of $55,281,897.00.

The DOJ separately resolved an enforcement action against General Cable through a non-prosecution agreement that required General Cable to pay a criminal penalty of $20,469,694.80.

In addition, on December 29, 2016, the SEC announced that it had resolved a separate enforcement action against Zimmer for violations of the FCPA. As part of the SEC’s cease-and-desist order, Zimmer was ordered to pay a $20,000 civil penalty.
:
Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
:
Cease and Desist
:
55,281,897
:
0
:
Issuer
:
U.S.
:
United States
:
50,000,000
:
Cash
:
Customs Broker or Agent/Consultant
:
19,000,000
:
Angola, Bangladesh, China, Egypt, Indonesia, Thailand
:
No
:
Yes