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In the Matter of Karl J. Zimmer

 
:
Karl J. Zimmer
:
SEC Civil
:
December 29, 2016
:
In the Matter of Karl J. Zimmer
:
In the Matter of Karl J. Zimmer, Admin. Proc. File No. 3-17756 (Dec. 29, 2016)
:
Wholesale Trade - Durable Goods
:
Angola
:
2013
:
Unnamed employees and officials from state-owned entities in Angola.
:
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. Karl J. Zimmer, a resident of Douglas, Georgia, was a Senior Vice President for General Cable’s Europe and Africa Supply Chain and Global Supply Chain.

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. Zimmer was allegedly responsible for approving improper commission payments to a third-party agent (“Agent”) to promote General Cable’s sales to Angolan state-owned enterprises. The SEC claims that Zimmer approved the multiple commissions totaling $342,613 despite knowing that (i) General Cable’s policies prohibited excessive commissions to third parties on sales to state-owned enterprises, (ii) General Cable had commenced an investigation into the Agent, and (iii) General Cable had prohibited past commissions to the Agent while the investigation was pending and without further approval.

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.

The SEC separately resolved an FCPA enforcement action 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 also 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.
:
Books and records (Individual), Internal Controls (Individual)
:
Cease and Desist
:
Zimmer agreed to pay a civil penalty of $20,000.
:
20,000
:
0
:
Agent of Issuer
:
Other Senior Officer
:
U.S.
:
United States
:
Not stated.
:
Not stated.
:
No
:
No