According to The Jakarta Post, the company has agreed to a $2 million settlement after an SEC investigation found that its representatives tried to win overseas contracts through illegal payments and gifts to military and police officials between 2007 and 2010.
In addition, the Smith & Wesson international sales staff has been fired and all pending international sales have been halted. For the next two years, the company will report on its Foreign Corrupt Practices Act (FCPA) compliance efforts to the SEC.
As Indonesia is one of the countries in which Smith & Wesson authorized improper payments, the Indonesian Corruption Watch has called for the Corruption Eradication Commission to investigate the charges, as the National Police is likely to face a conflict of interest, The Jakarta Post writes.
CNN reported that Pakistani police officials received more than $11,000 worth of guns in exchange for a contract that would profit Smith & Wesson by $107,852. The SEC found similar bribery attempts took place in Turkey, Nepal and Bangladesh.
As AFP reports, the company did not admit or deny allegations, but accepted the settlement with a statement from James Debney, the Smith & Wesson chief executive: “We are pleased to have concluded this matter with the SEC and believe that the settlement we have agreed upon is in the best interests of Smith & Wesson and its shareholder…”
