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In re NCH Corporation

 
:
NCH Corporation
:
DOJ Criminal
:
September 29, 2016
:
In re NCH Corporation
:
In re NCH Corporation (2016)
:
Consistent with its new Pilot Program, the DOJ simultaneously issued letters of declination to both NCH and HMT LLC, however, both companies were also required to disgorge all profits they made from the bribery. Both letters, dated September 29, represent a new category of enforcement actions by the DOJ, “declinations with disgorgement.” Previously, declinations issued by DOJ did not require any disgorgement.
:
Chemicals
:
China
:
2011; 2012; 2013
:
Unnamed Chinese government officials.
:
NCH is an industrial supply and maintenance company based in Irving, Texas.

According to the DOJ, from approximately February 2011 until mid-2013, NCH’s Chinese subsidiary (“NCH China”) illegally provided Chinese government officials with cash, gifts, meals, and entertainment to influence those officials’ purchasing decisions. NCH China allegedly described these fees in internal records as “customer maintenance fees,” “customer cooperation fees,” and “cash to customer.” Additionally, NCH China allegedly paid for Chinese government officials to attend a 10-day trip to various cities in the United States and Canada, which included minimal business activities.

On September 29, 2016, the DOJ announced that it would decline to bring charges against NCH in exchange for NCH’s agreement to disgorge $335,342 in ill-gotten gains.
:
Anti-bribery (Domestic Concern), Anti-bribery (Other Persons)
:
Disgorgement
:
Disgorgement of $335,342.
:
335,342
:
0
:
Domestic Concern, Other Person
:
U.S.
:
United States
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Entertainment, Gifts, Travel
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Subsidiary Company
:
44,545
:
China
:
No
:
Yes