Defendant Name: Avon Products, Inc.

Defendant Type: Public Company

Document Reference: court_doc6_14-cv-09956

Document Details

Legal Case Name SEC v. Avon Products, Inc.
Document Name Final Judgment
Document Date 08-Jan-2015
Document Format Civil Proceeding
Case Number 14-cv-09956
Federal District Court New York, Southern District of New York
Federal District Judge Katherine Polk Failla
Allegation Type Foreign Corrupt Practices Act
Document Summary On January 8, 2015, Federal District Judge Katherine Polk Failla entered final judgment against Avon Products, Inc. pursuant to the consent of Avon Products, Inc.

Disgorgement & Penalty Information

Resolutions
Enjoinment
Compliance Related Independent Consultant
Monetary Penalties:

Disgorgement

Individual:     $52,850,000.00 Shared:    

Pre-Judgment Interest

Individual:     $14,515,013.13 Shared:    

Total Penalty

Individual:     $67,365,013.13 Shared:    

Related Documents:

comp-pr2014-285 17-Dec-2014 Complaint
Complaint
On December 17, 2014, the SEC filed a complaint charging Avon Products, Inc. ("Avon") with violations of the Foreign Corrupt Practices Act ("FCPA") for failing to put in place controls that could have detected and prevented payments made to Chinese government officials by employees and consultants at an Avon Chinese subsidiary from 2004 through the third quarter of 2008. According to the complaint: "Avon Products China provided cash and things of value, including gifts, travel, and entertainment, to various Chinese government officials, including government officials responsible for awarding a test license, and subsequently a direct sales business license, that would allow a company to utilize direct door-to-door selling in China. Avon Products China was, in fact, awarded a test license and, then, the first official direct selling business license in China. Avon Products China also adopted an internal 'no penalty policy' and provided cash and things of value to Chinese government officials to avoid fines and other penalties in order to maintain an ostensibly pristine corporate image." Additionally, "Avon Products China falsified its books and records so as to conceal the cash and things of value provided to government officials."
LR-23159 17-Dec-2014 Litigation Release
SEC Charges Avon Products, Inc. with FCPA Violations
On January 17, 2015, the SEC announced that it charged Avon Products, Inc. with failing to put in place controls that could have detected and prevented payments made to Chinese government officials from 2004 through the third quarter of 2008. In addition, "Avon's books and records failed to accurately record the details and purpose of the payments." The SEC alleged that the conduct violated the Foreign Corrupt Practices Act (FCPA).
2014-285 17-Dec-2014 Press Release--Civil Action
SEC Charges Avon With FCPA Violations
On December 17, 2014 the SEC charged Avon Products Inc. with a violation of the FCPA for "failing to put controls in place to detect and prevent payments and gifts to Chinese government officials from employees and consultants at a subsidiary." Avon has agreed to settle the SEC's charges and a parallel case announced on December 17, 2014 by the U.S. Department of Justice and the U.S. Attorney's Office for the Southern District of New York.