Looks like John Deere found itself in a massage parlor-sized mess recently. Earlier last month, the agricultural giant agreed to cough up $9.9 million to settle charges from the Securities and Exchange Commission (SEC) for violating the Foreign Corrupt Practices Act (FCPA). Apparently, bribing foreign companies with a little R&R didn’t quite end as happily as they might have hoped for this happy ending.
For those not as massive of the John Deere Corporation, the FCPA makes it crystal clear: U.S. companies cannot bribe foreign government officials to secure or maintain business. Oh, and bribing foreign companies or individuals? That’s a no-go too.
According to the SEC investigation, Deere wasn’t just plowing fields—they were plowing right through record-keeping and accounting control provisions. The result? A cease-and-desist order from the SEC, a hefty $5.4 million in ill-gotten profits (plus interest), and another $4.5 million in civil penalties. Not too shabby for a “we’re not admitting guilt but not exactly denying it either” settlement and statement.
Plot Twist: Sordid Details Surface
It all started in 2017 when Deere acquired equipment manufacturer Wirtgen Thailand. That’s when things got really interesting. The SEC claims that Wirtgen’s employees handed out bribes like party favors to officials from the Royal Thai Air Force, the Thai Department of Highways, and the Thai Department of Rural Roads to score a few government contracts. Oh, and they didn’t stop there—private company employees allegedly got a taste of the action too. (Guess you got to take care over a lot of people in a bribe scandal)
So supposedly: Cash payments? Check. International trips? Double-check. Massage parlor visits? Uh… maybe triple-check?
The alleged bribes, which took place between 2017 and 2020, reportedly netted Wirtgen Thailand a cool $4.3 million in profits. But Deere allegedly dressed it all up as “legitimate expenses,” because why not?
“After acquiring Wirtgen Thailand in 2017, Deere failed to timely integrate it into its existing compliance and controls environment, resulting in these bribery schemes going unchecked for several years,” Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit, says. “This action is a reminder for corporations to promptly ensure newly acquired subsidiaries have all the necessary internal accounting control processes in place.”
Deere Speaks Out
After the dust settled, Deere put on its best PR face. The company said it had conducted a “thorough investigation” and fully cooperated with the SEC once the red flags started popping up.
“These allegations represent a clear violation of our company policies and ethical standards,” Deere officials say. “Furthermore, they are in direct conflict with our core values — particularly our commitment to integrity — and we strongly condemn such practices. The individuals involved in this matter are no longer with the company.”
Lesson learned: when it comes to bribes, even a little massage therapy won’t ease the corporate headache.
We are Deere fans, and Deere is a large company with many facets, but when the news is this crazy… it is worth the write.
