Deere & Company has agreed to pay $9.9 million to settle charges from the Security and Exchange Commission alleging that the company violated the Foreign Corrupt Practices Act, which prohibits U.S. companies from paying foreign government officials to aid in acquiring business.

The SEC concluded that Deere was in violation of the FCPA's record keeping policies and Deere & Company agreed to the SEC's order to cease and desist from further violations of the FCPA. The $9.9 million is a result of 2 separate payments — $5.4 million which the company is alleged to have profited from the scandal as well as $4.5 million in additional civil penalties. 

Despite calls from various organizations for top Deere officials to resign, the terms of the $9.9 million settlement do not include any acknowledgement of fault or denial of guilt from Deere.   

Deere acquired Wirtgen Thailand in 2017 and according to the SEC, between 2017 and 2020, this subsidiary then used cash, international travel perks and massage parlor visits to bribe various officials from the Thai Department of Highways, the Thai Department of Rural Roads and the Royal Thai Air Force in order to help the company obtain government contracts and acquire sales that amounted to more than $4 million.

The SEC also alleges that Deere officials concealed these bribes and filed them under legitimate expenses. In a press release from the SEC, Charles E. Cain, Chief of the SEC Enforcement Division's FCPA Unit elaborated on the charges to Deere & Company. 

"After acquiring Wirtgen Thailand in 2017, Deere failed to timely integrate it into its existing compliance and controls environment, resulting in these bribery schemes going unchecked for several years," Cain says. "This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place."

In an official statement from Deere & Company, officials addressed the allegations and the settlement.

“These allegations represent a clear violation of our company policies and ethical standards,” Deere officials say. “Furthermore, they are in direct conflict with our core values — particularly our commitment to integrity — and we strongly condemn such practices. The individuals involved in this matter are no longer with the company.”

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