SEC v. Si Chan Wooh, No. LR-20174, District of Oregon (June 29, 2007) — Press Release
raw: Si Chan Wooh
Si Chan Wooh, No. LR-20174 (June 29, 2007)
Si Chan Wooh, former Executive Vice President of a Schnitzer Steel subsidiary, violated the FCPA by paying over $1.9 million in bribes to government and private steel mill managers in China and South Korea from 1999 to 2004, generating $6.2 million in profits, and settled by paying $40,000 in disgorgement, interest, and a $25,000 penalty without admitting or denying the charges.
Si Chan Wooh was charged by the SEC with violating the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for authorizing over $200,000 in bribes to Chinese government-owned steel mill managers and an additional $1.7 million to privately owned mills in China and South Korea between 1999 and 2004. These illicit payments generated more than $6.2 million in profits for Schnitzer Steel, and Wooh also aided and abetted the company’s violations of FCPA accounting provisions. Without admitting or denying the allegations, Wooh agreed to disgorge $14,819.38 in bonuses plus $1,312.52 in interest, pay a $25,000 civil penalty, and accept a permanent injunction against future FCPA violations.
Si Chan Wooh, former Executive Vice President of a Schnitzer Steel subsidiary, violated the Foreign Corrupt Practices Act (FCPA) by orchestrating over $200,000 in cash bribes and gifts to managers of government-owned steel mills in China, and an additional $1.7 million in similar payments to privately owned steel mills in China and South Korea between 1999 and 2004. These corrupt payments secured scrap metal sales that generated more than $6.2 million in profits for Schnitzer Steel, while Wooh also aided and abetted the company’s violations of FCPA accounting requirements by failing to maintain accurate books and records. In October 2006, Schnitzer Steel settled related SEC charges by paying $7.7 million in disgorgement and $7.5 million in criminal penalties to the U.S. Department of Justice. Without admitting or denying the allegations, Wooh agreed to disgorge $14,819.38 in bonuses, pay $1,312.52 in prejudgment interest, and a $25,000 civil penalty, totaling approximately $40,000, and accepted a permanent injunction barring future FCPA violations. The SEC acknowledged the Department of Justice’s assistance in the investigation and confirmed that its probe into related matters was still ongoing at the time of the settlement.
Exhibits & Attached Documents (2)
Extracted insights
- $7.70M $7.7 million $1M–$10M
- $7.50M $7.5 million $1M–$10M
- $6.20M $6.2 million $1M–$10M
- $1.70M $1.7 million $1M–$10M
- $200K $200,000 $100K–$1M
- $40K $40,000 $10K–$100K
- $25K $25,000 $10K–$100K
- $15K $14,819 $10K–$100K
- $1K $1,312 <$10K
- person Si Chan Wooh ×2
- company schnitzer steel industries, inc.
- agency Securities and Exchange Commission
- Si Chan Wooh violated the anti-bribery provisions of the Foreign Corrupt Practices Act
- SEC charged Si Chan Wooh, former Executive Vice President of Schnitzer Steel Industries, Inc.
- SEC filed a case against Si Chan Wooh in the U.S. District Court for the District of Oregon
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20174 / June 29, 2007 SEC v. Si Chan Wooh, Case No. CV-07-957 ST. (D. Or. filed June 29, 2007) SEC Settles Charges Against Former Portland Steel Executive for Anti-Bribery Statute Violations The Securities and Exchange Commission today announced charges against a former executive of Portland, Oregon-based Schnitzer Steel Industries, Inc., for violating the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"). Without admitting or denying the allegations, Si Chan Wooh of Tacoma, Washington, the former Executive Vice President and head of a Schnitzer subsidiary, agreed to pay approximately $40,000 in disgorgement, interest and penalties. The Commission's complaint, filed in federal district court in Portland, Oregon, alleges that from at least 1999 through 2004, Wooh paid over $200,000 in cash bribes and other gifts to managers of government-owned steel mills in China to induce them to purchase scrap metal from Schnitzer. According to the Commission, Schnitzer realized over $6.2 million in profits from sales to customers procured through these illicit payments. The Complaint further alleges that during the same period, Wooh made or authorized similar payments totaling over $1.7 million to managers of privately owned steel mills in both China and South Korea. The Commission's complaint alleges that Wooh violated the anti-bribery provisions of the FCPA and that he aided and abetted Schnitzer's violations of the FCPA provisions that require companies to keep accurate books and records (respectively, Sections 30A and 13(b)(2)(A) of the Securities Exchange Act of 1934). Without admitting or denying the charges, Wooh agreed to disgorge $14,819.38 in bonuses plus prejudgment interest of $1,312.52, to pay a $25,000 civil penalty, and to an order enjoining him from violations of the FCPA in the future. In October 2006, Schnitzer settled related charges by the Commission by paying $7.7 million in disgorgement. Schnitzer also paid $7.5 million in penalties to settle related criminal charges brought by the U.S. Department of Justice. The Commission acknowledges the assistance of the Department of Justice in the Commission's investigation. The Commission's investigation is continuing. See also: Administrative Release 34-54606 (Oct. 16, 2006) (Schnitzer Steel Industries, Inc.) SEC Complaint in this matterU.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 20174 / June 29, 2007 SEC v. Si Chan Wooh, Case No. CV-07-957 ST. (D. Or. filed June 29, 2007) SEC Settles Charges Against Former Portland Steel Executive for Anti-Bribery Statute Violations The Securities and Exchange Commission today announced charges against a former executive of Portland, Oregon-based Schnitzer Steel Industries, Inc., for violating the anti-bribery provisions of the Foreign Corrupt Practices Act ("FCPA"). Without admitting or denying the allegations, Si Chan Wooh of Tacoma, Washington, the former Executive Vice President and head of a Schnitzer subsidiary, agreed to pay approximately $40,000 in disgorgement, interest and penalties. The Commission's complaint, filed in federal district court in Portland, Oregon, alleges that from at least 1999 through 2004, Wooh paid over $200,000 in cash bribes and other gifts to managers of government-owned steel mills in China to induce them to purchase scrap metal from Schnitzer. According to the Commission, Schnitzer realized over $6.2 million in profits from sales to customers procured through these illicit payments. The Complaint further alleges that during the same period, Wooh made or authorized similar payments totaling over $1.7 million to managers of privately owned steel mills in both China and South Korea. The Commission's complaint alleges that Wooh violated the anti-bribery provisions of the FCPA and that he aided and abetted Schnitzer's violations of the FCPA provisions that require companies to keep accurate books and records (respectively, Sections 30A and 13(b)(2)(A) of the Securities Exchange Act of 1934). Without admitting or denying the charges, Wooh agreed to disgorge $14,819.38 in bonuses plus prejudgment interest of $1,312.52, to pay a $25,000 civil penalty, and to an order enjoining him from violations of the FCPA in the future. In October 2006, Schnitzer settled related charges by the Commission by paying $7.7 million in disgorgement. Schnitzer also paid $7.5 million in penalties to settle related criminal charges brought by the U.S. Department of Justice. The Commission acknowledges the assistance of the Department of Justice in the Commission's investigation. The Commission's investigation is continuing. See also: Administrative Release 34-54606 (Oct. 16, 2006) (Schnitzer Steel Industries, Inc.) SEC Complaint in this matter