WPP Pays $19m to Settle SEC Corrupt Practice Charges

WPP has agreed to pay more than $19m to settle charges that it violated several provisions of the USA's Foreign Corrupt Practices Act (FCPA). The SEC accused the marcoms giant of breaches of protocols including anti-bribery, books and records, and internal accounting.

The accused party neither admitted nor denied the findings of the SEC (Securities and Exchange Commission), but agreed to cease and desist from such breaches and to pay $10.1m in disgorgement, $1.1m in prejudgment interest, and an $8m penalty, according to news site www.mediapost.com .

SEC documents said WPP pursued an aggressive business growth strategy including the acquisition of local ad agencies in high-risk markets, and failed to ensure that the bought companies then complied with its own regulations, instead permitting them to continue with unacceptable practices despite repeated warnings that these were occurring. One example cites a newly acquired Indian subsidiary which continued to bribe Indian government officials in return for advertising contracts despite seven anonymous complaints to WPP concerning the matter; others refer to WPP's subsidiaries in China, Brazil and Peru.

In a statement on Friday WPP said the SEC's findings related to the period 'until 2018' - the Sorrell era - and points out that 'As the Commission's Order recognizes, WPP's new leadership has put in place robust new compliance measures and controls, fundamentally changed its approach to acquisitions, cooperated fully with the Commission and terminated those involved in misconduct'.

Web site: www.wpp.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.