LEXINGTON, Ky. (Legal Newsline) — The U.S. Department of Justice announced Dec. 29 that General Cable Corporation will pay $20 million after allegations it made improper payments to government officials in Angola, Bangladesh, China, Indonesia and Thailand to gain business. Purported conduct of this nature violates the Foreign Corrupt Practices Act (FCPA).
“General Cable paid bribes to officials in multiple countries in a scheme that involved a high-level executive of the company and resulted in profits of more than $50 million worldwide,” said assistant attorney general Leslie Caldwell. “But General Cable also voluntarily self-disclosed this misconduct to the government, fully cooperated and remediated. This resolution demonstrates the very real upside to coming in and cooperating with federal prosecutors and investigators. It also reflects our ongoing commitment to transparency.”
General Cable admitted some of its executives knew about the corrupt payments made by foreign subsidiaries. The subsidiaries were paying off foreign officials to gain business for the company. The conduct allegedly began in 2002, with corrupt payments being made through 2013.
According to the department, the company's foreign subsidiaries paid roughly $13 million in bribes over that time, which led to $51 million in profits for General Cable.
“In 2015, international corruption squads across the country were formed to address the national and international implications of foreign corruption,” said assistant director Stephen Richardson.
“This settlement is an example of the exceptional efforts of those dedicated squads and investigators. The FBI looks forward to continuing to work with our law enforcement partners to address corruption, no matter how big or small.”