Skip to content

Editors

Harry Cassin
Publisher and Editor

Andy Spalding
Senior Editor

Jessica Tillipman
Senior Editor

Bill Steinman
Senior Editor

Richard L. Cassin
Editor at Large

Elizabeth K. Spahn
Editor Emeritus

Cody Worthington
Contributing Editor

Julie DiMauro
Contributing Editor

Thomas Fox
Contributing Editor

Marc Alain Bohn
Contributing Editor

Bill Waite
Contributing Editor

Russell A. Stamets
Contributing Editor

Richard Bistrong
Contributing Editor

Eric Carlson
Contributing Editor

After China investigation, Grainger wins DOJ declination

Industrial supplier W.W. Grainger, Inc. said last week the DOJ won’t prosecute the company for giving pre-paid gift cards to some customers in China.

Grainger said its internal investigation didn’t substantiate ‘significant use of gift cards for improper purposes in China.’

‘On August 14, 2012,’ Grainger said, ‘the DOJ closed its inquiry into this matter.’

No word whether the SEC will also decline to bring an enforcement action against Grainger.

Accounting lapses apparently first led to launch of the company’s internal investigation. Grainger said it discovered the ‘alleged falsification of expense reimbursement forms submitted by employees in certain sales offices of Grainger China LLC.’

The SEC enforces the FCPA’s accounting provisions through administrative actions or civil lawsuits in federal court. The DOJ enforces the FCPA’s criminal antibribery provisions.

*     *     *

Here’s the full FCPA disclosure from W.W. Grainger, Inc.’s Form 10-Q filed with the SEC on November 1:

As previously reported, the Company has been conducting an inquiry into alleged falsification of expense reimbursement forms submitted by employees in certain sales offices of Grainger China LLC, a subsidiary of the Company. In the course of the investigation the Company learned that sales employees may have provided prepaid gift cards to certain customers. The Company’s investigation included determining whether there were any violations of laws, including the U.S. Foreign Corrupt Practices Act. The Company retained outside counsel to assist in its investigation of this matter. On January 24, 2012, the Company contacted the DOJ and the Securities and Exchange Commission to voluntarily disclose that the Company was conducting an internal investigation, and agreed to fully cooperate and update the DOJ and SEC periodically on further developments. The results of the investigation, which have been submitted to the DOJ and the SEC, did not substantiate initial information suggesting significant use of gift cards for improper purposes. On August 14, 2012, the DOJ closed its inquiry into this matter.

Want access to every FCPA disclosure filed with the SEC? Join the FCPA Blog members area today and enjoy a 15% discount.

Share this post

LinkedIn
Facebook
Twitter

Comments are closed for this article!