Ralph Lauren Corp. has settled U.S. Justice Department and Securities and Exchange Commission allegations that bribes were paid to Argentine import officials, agreeing to give up more than $700,000 of illicit profits and pay an $882,000 penalty, federal authorities said yesterday. The New York-based apparel company promptly reported the violations from 2005 to 2009 after discovering them in 2010, terminated culpable employees and a third-party agent, and shut down its offices and stores in Argentina, officials said. The company won’t be prosecuted under agreements for maintaining worldwide risk assessment and training employees about the U.S. Foreign Corrupt Practices Act, which it was accused of violating.
The SEC said bribes of $593,000 were paid over four years through its customs broker to get its products into Argentina without necessary paperwork and avoid inspection of prohibited products. The violations were found when the company adopted measures to improve its worldwide internal controls.
