THE U.S. Securities & Exchange Commission has shown the Smith & Wesson gun maker its metal for what it claims is a violation of corrupt practices overseas.
The SEC claimed the gun maker's international sales staff distributed improper payments and hand guns as gifts to key employees with authority to award contracts in contravention of US regulations under the Foreign Corrupt Practices Act.
The gun maker made a paltry $100,000 profit from the one contract secured prior to the SEC scrutiny of its overseas contracts.
Smith & Wesson Holding Corporation agreed to pay almost $2 million fine during an SEC administrative proceeding.
Kara Brockmeyer, chief of the SEC Enforcement Division’s FCPA Unit said, “When a company makes the strategic decision to sell its products overseas, it must ensure that the right internal controls are in place and operating.”
Source: SEC Newsroom