UPS Announces Possible FCPA Violations
It is annual report season and it is worth reading the fine print. As indicated below, United Parcel Service Inc. (UPS) revealed in its annual report filed today with the Securities and Exchange Commission that it has learned that employees of a company it acquired in 2001 may have violated the United States Foreign Corrupt Practices Act. UPS stated that it disclosed the possible violations to the SEC and Justice Department. The following is the relevant language from the annual report:
"With the assistance of outside counsel, we have undertaken an internal investigation of certain conduct within our Supply Chain Solutions subsidiary in certain locations outside the United States. Our investigation has determined that certain conduct, which commenced prior to our subsidiary’s 2001 acquisition of a freight forwarding business that was part of Fritz Companies Inc., may have violated the United States Foreign Corrupt Practices Act. Our investigation also determined that a small number of former employees directed the conduct in question. The monetary value involved in this conduct appears to be immaterial. We have implemented numerous remediation steps, and our investigation continues. In March 2006 we informed the SEC and the Department of Justice of our investigation, and we intend to cooperate fully with any review by the government of these issues. We do not believe that the results of this investigation, the remediation or related penalties, if any, will have a material adverse effect on our financial condition, liquidity or results of operations, nor do we believe that these matters will have a material adverse effect on our business and prospects."
|posted by Douglas N. Jacobson| Permalink 
