and foreign laws and regulations, including the FCPA and corporate governance of the Mexico operations.” According to the order, the company noted that it had material weaknesses in its internal control over financial reporting, including “control design gaps in accounts payable environment related to vendor management and payment processes in Mexico and in entity level control environment related to adherence to U.S.
WAC addressed the lack of oversight in a financial performance report to the SEC after the SEC began to investigate in March 2017. “As a result of the bribery scheme, WAC was unjustly enriched by approximately $18 million,” the report said, faulting both WAC and its Mexican subsidiary for lacking the adequate internal accounting controls necessary to detect or prevent the payments. as “commission expenses” in company books and records, according to the settlement order.Ī spreadsheet of expenses was sent monthly by the Mexican subsidiary to the Greenville-based accounting office without invoices or backup support, according to the SEC order. Payments were recorded by the World Acceptance Corp. The SEC alleges that, through the subsidiary’s bribery scheme, lasting from at least December 2010 through June 2017, $1.5 million was paid to officials, $580,000 to union officials and $480,000 to third-party intermediaries. The alleged bribes, paid directly or through intermediaries who flew with “large bags of cash” to various Mexican municipalities, were used to ensure that government employees repaid loans in a timely manner, according to an SEC report. Securities and Exchange Commission, neither admitting nor denying that the company's former subsidiary violated the Foreign Corrupt Practices Act by paying more than $4 million in bribes to Mexican government and union officials. agreed last week to pay $21.7 million to the U.S. The Greenville-based World Acceptance Corp. This story was updated on August 11, 2020.
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