Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

SEC v. Si Chan Wooh

 
:
Schnitzer Steel - Wooh, Si Chan (SEC)
:
SEC Civil
:
June 29, 2007
:
SEC v. Si Chan Wooh
:
SEC v. Si Chan Wooh, Case No. 3:07-cv-00957-ST (D Or. filed June 29, 2007)
:
Building Products
:
China, South Korea
:
1999; 2000; 2001; 2002; 2003; 2004
:
Managers of state-owned steel mills in China
:
Si Chan Wooh settled this action with the SEC without admitting or denying the following facts alleged in the SEC's order.

On June 29, 2007, the SEC announced charges against a former executive of Portland, Oregon-based Schnitzer Steel Industries, Inc., for violating the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"). Without admitting or denying the allegations, Si Chan Wooh of Tacoma, Washington, the former Executive Vice President and head of a Schnitzer subsidiary, agreed to pay approximately $40,000 in disgorgement, interest and penalties.
The Commission's complaint, filed in federal district court in Portland, Oregon, alleges that from at least 1999 through 2004, Wooh paid over $200,000 in cash bribes and other gifts to managers of government-owned steel mills in China to induce them to purchase scrap metal from Schnitzer. According to the Commission, Schnitzer realized over $6.2 million in profits from sales to customers procured through these illicit payments. The Complaint further alleges that during the same period, Wooh made or authorized similar payments totaling over $1.7 million to managers of privately owned steel mills in both China and South Korea.
The Commission's complaint alleges that Wooh violated the anti-bribery provisions of the FCPA and that he aided and abetted Schnitzer's violations of the FCPA provisions that require companies to keep accurate books and records (respectively, Sections 30A and 13(b)(2)(A) of the Securities Exchange Act of 1934). Without admitting or denying the charges, Wooh agreed to disgorge $14,819.38 in bonuses plus prejudgment interest of $1,312.52, to pay a $25,000 civil penalty, and to an order enjoining him from violations of the FCPA in the future.
In October 2006, Schnitzer settled related charges by the Commission by paying $7.7 million in disgorgement. Schnitzer also paid $7.5 million in penalties to settle related criminal charges brought by the U.S. Department of Justice.
:
Aiding and abetting books and records, Anti-bribery (Other Persons)
:
Civil penalty, Disgorgement, Injunction/Cease and desist, Prejudgment Interest
:
Disgorgement of $14,819.38 in bonuses plus prejudgment interest of $1,312.52, $25,000 civil penalty, and an injunction for future violations of the FCPA.
:
41,133
:
0
:
Officer of Issuer
:
Other Senior Officer, President
:
U.S.
:
Contract Procurement/Retention
:
600,000,000
:
Cash, Gifts, Wire/check
:
Direct, Shell entity
:
1,925,000
:
China, South Korea
:
South Korea
:
No
:
No