CNN reports that Smith & Wesson has settled with the US Government for charges of bribing foreign officials. The settlement is reportedly $2 million for violations from 2007 and 2010. Smith & Wesson agreed to the settlement without admitting or deny the findings of the SEC.
In one case, the SEC says Smith & Wesson provided more than $11,000 worth of guns as a gift to Pakistani police officials there. That deal won the gun maker a contract to sell 548 pistols to the police department for a profit of $107,852.
While that was the only corrupt contract ultimately fulfilled, the SEC says the company also tried to secure sales contracts by bribing officials at an Indonesian police department, as well as foreign officials in Turkey, Nepal and Bangladesh.
Violating FCPA is a big deal in the defense industry and I am surprised that Smith & Wesson was able to get off so easy considering the current administration. My guess is that there was no ITAR violations and very little hard evidence. As part of the settlement, Smith & Wesson “agreed to fire its international sales staff.”
Sales guys, start polishing your resumes.