General Cable To Pay More Than $75 Million In Fines For Violating Foreign Corrupt Practices Act

By Ciara Linnane Markets MarketWatch Pulse

General Cable Corp. has agreed to pay more than $75 million to resolve U.S. Justice Department and Securities and Exchange Commission charges for violating the Foreign Corrupt Practices Act, the SEC said Thursday. The company will pay the SEC another $6.5 million to settle separate accounting violations. The Kentucky-based maker of copper, aluminum and fiber optic wire and cable products was charged with making improper payments to government officials in Angola, Bangladesh, China, Egypt, Indonesia, and Thailand to get or keep business. "General Cable's weak internal controls also failed to detect improper inventory accounting at its Brazilian subsidiary, causing the company to materially misstate its financial statements from 2008 to the second quarter of 2012," said the SEC. The regulator charged Karl Zimmer, General Cable's then-senior vice president responsible for sales in Angola, with knowingly circumventing internal controls. Shares were down 1% Thursday, but have gained 43% in the year, while the S&P 500 has gained about 10%.

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