DOW JONES NEWSWIRES
Tobacco companies Universal Corp. (UVV) and Alliance One
International Inc. (AOI) have agreed to pay millions in
disgorgement and fines after being hit with bribery charges from
the U.S. Securities and Exchange Commission and Department of
Justice.
The SEC said the companies together paid more than $5 million in
bribes to government officials in Thailand and other countries in
order to illicitly obtain tobacco sales contracts.
To settle the charges, Universal has agreed to pay $4.5 million
in disgorgement and a $4.4 million fine, and Alliance One agreed to
pay $10 million in disgorgement and a $9.45 million fine. Two
foreign subsidiaries of Alliance One pleaded guilty to a
three-count criminal information for violating U.S. anti-bribery
law while Universal reached a non-prosecution agreement after
admitting to conspiracy to violating various provisions of the
Foreign Corrupt Practices Act.
Universal paid about $800,000 in bribes to officials with the
government-owned Thailand Tobacco Monopoly in exchange for securing
about $11.5 million worth of tobacco sales contracts for its
subsidiaries, the SEC said.
Meanwhile, companies that merged to become Alliance One in
2005--Dimon Inc. and Standard Commercial Corp.--paid more than $1.2
million in bribes to TTM officials to garner more than $18.3
million in contracts, according to the agency.
The remainder of the bribes were paid to officials in several
other countries, according to the SEC.
Shares of Universal fell 3.4% to $36.78 in recent trading, while
Alliance One shares rose 3% to $3.44. The stocks have declined 19%
and 30%, respectively, so far this year.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com