Press Release: SEC Charges Former Chairman/CEO of Schnitzer Steel for Authorizing Cash Bribes to Foreign Officials (Press Release No. 2007-262; December 13, 2007)
Former Schnitzer Steel CEO Robert W. Philip authorized over $200,000 in bribes to Chinese government officials and $1.7 million to private mill managers in China and South Korea to secure scrap metal sales, generating over $600 million in revenue, and settled SEC charges by paying $261,400 in disgorgement, interest, and a penalty without admitting or denying wrongdoing.
Robert W. Philip, former Chairman and CEO of Schnitzer Steel, was charged by the SEC with violating the Foreign Corrupt Practices Act by authorizing over $200,000 in cash bribes to officials at Chinese government-owned steel mills between 1999 and 2004, which generated $96 million in revenue and $6.2 million in profits. He also approved over $1.7 million in payments to managers at privately owned mills in China and South Korea, yielding more than $500 million in additional revenue. Without admitting or denying the allegations, Philip agreed to pay $169,863.79 in disgorgement, $16,536.63 in prejudgment interest, and a $75,000 civil penalty, totaling $261,400.42, and accepted a permanent injunction against future FCPA violations.
Robert W. Philip, former Chairman and CEO of Schnitzer Steel Industries, was charged by the SEC with violating the Foreign Corrupt Practices Act by authorizing over $200,000 in cash bribes and gifts to officials at Chinese government-owned steel mills between 1999 and 2004 to secure scrap metal sales, which generated $96 million in revenue and $6.2 million in profits. He also approved over $1.7 million in payments to managers of privately owned steel mills in China and South Korea, resulting in more than $500 million in additional company revenue. The SEC alleged that Philip violated the FCPA’s anti-bribery, recordkeeping, and internal controls provisions. Without admitting or denying the allegations, Philip agreed to disgorge $169,863.79 in bonuses, pay $16,536.63 in prejudgment interest, and a $75,000 civil penalty, totaling $261,400.42, and accepted a court order permanently enjoining him from future FCPA violations. Schnitzer Steel had previously settled related charges in October 2006 by paying $7.7 million in disgorgement to the SEC and $7.5 million in criminal penalties to the U.S. Department of Justice. The SEC acknowledged the DOJ’s assistance in the investigation, highlighting a coordinated enforcement effort targeting corporate and individual accountability for overseas bribery. This case underscored the SEC’s commitment to holding executives personally responsible for systemic foreign corruption schemes.
Extracted insights
- $500.00M $500 million $100M–$1B
- $96.00M $96 million $10M–$100M
- $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
- $250K $250,000 $100K–$1M
- $200K $200,000 $100K–$1M
- $170K $169,863 $100K–$1M
- $75K $75,000 $10K–$100K
- $17K $16,536 $10K–$100K
- person robert w. philip
- company schnitzer steel industries, inc.
- agency Securities and Exchange Commission
- Securities And Exchange Commission charged Robert W. Philip
- Robert W. Philip agreed to pay $250,000
- Robert W. Philip authorized $200,000 in cash bribes
- Schnitzer Steel Industries, Inc. generated $96 million in revenue
- Robert W. Philip authorized $1.7 million in payments
- Robert W. Philip agreed to disgorge $169,863.79 in bonuses
- Robert W. Philip agreed to pay $75,000 civil penalty
- Schnitzer Steel Industries, Inc. paid $7.7 million in disgorgement
- Schnitzer Steel Industries, Inc. paid $7.5 million in penalties
SEC Charges Former Chairman/CEO of Schnitzer Steel for Authorizing Cash Bribes to Foreign Officials FOR IMMEDIATE RELEASE 2007-262 Washington, D.C., Dec. 13, 2007 — The Securities and Exchange Commission today charged the former Chairman and CEO of Schnitzer Steel Industries, Inc., with violating anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) by approving cash payments and other gifts to officials at Chinese government-owned steel mills to entice their business. Without admitting or denying the allegations, Robert W. Philip of Portland, Ore., agreed to pay more than $250,000 to settle the SEC’s charges. “This case demonstrates the Commission’s commitment to holding individuals accountable when they engage in illegal conduct to obtain business in foreign countries,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. The Commission’s complaint, filed in U.S. district court in Portland, Ore., alleges that from at least 1999 through 2004, Philip authorized payment of more than $200,000 in cash bribes and other gifts to managers at government-owned steel mills in China to induce them to purchase scrap metal from Portland-based Schnitzer. The Commission alleges that Schnitzer generated more than $96 million in revenue and more than $6.2 million in profits from sales to customers who had received the improper payments. The complaint further alleges that Philip authorized more than $1.7 million in payments to managers of privately owned steel mills in both China and South Korea, generating more than $500 million in additional revenue for the company. The SEC’s complaint alleges that Philip violated the anti-bribery, recordkeeping and internal controls provisions of the FCPA. Philip agreed to disgorge $169,863.79 in bonuses and pay $16,536.63 in prejudgment interest and a $75,000 civil penalty, and agreed to an order enjoining him from future violations of the FCPA. In October 2006, Schnitzer paid $7.7 million in disgorgement to settle related charges by the Commission, and 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 its investigation. # # # For more information, contact: Marc J. Fagel Co-Acting Regional Director SEC’s San Francisco Regional Office (415) 705-2449 Cary S. Robnett Assistant Regional Director SEC’s San Francisco Regional Office (415) 705-2335 Additional materials: Litigation Release No. LR-20397 http://www.sec.gov/news/press/2007/2007-262.htm Home | Previous Page Modified: 12/13/2007
SEC Charges Former Chairman/CEO of Schnitzer Steel for Authorizing Cash Bribes to Foreign Officials FOR IMMEDIATE RELEASE 2007-262 Washington, D.C., Dec. 13, 2007 — The Securities and Exchange Commission today charged the former Chairman and CEO of Schnitzer Steel Industries, Inc., with violating anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) by approving cash payments and other gifts to officials at Chinese government-owned steel mills to entice their business. Without admitting or denying the allegations, Robert W. Philip of Portland, Ore., agreed to pay more than $250,000 to settle the SEC’s charges. “This case demonstrates the Commission’s commitment to holding individuals accountable when they engage in illegal conduct to obtain business in foreign countries,” said Linda Chatman Thomsen, Director of the SEC’s Division of Enforcement. The Commission’s complaint, filed in U.S. district court in Portland, Ore., alleges that from at least 1999 through 2004, Philip authorized payment of more than $200,000 in cash bribes and other gifts to managers at government-owned steel mills in China to induce them to purchase scrap metal from Portland-based Schnitzer. The Commission alleges that Schnitzer generated more than $96 million in revenue and more than $6.2 million in profits from sales to customers who had received the improper payments. The complaint further alleges that Philip authorized more than $1.7 million in payments to managers of privately owned steel mills in both China and South Korea, generating more than $500 million in additional revenue for the company. The SEC’s complaint alleges that Philip violated the anti-bribery, recordkeeping and internal controls provisions of the FCPA. Philip agreed to disgorge $169,863.79 in bonuses and pay $16,536.63 in prejudgment interest and a $75,000 civil penalty, and agreed to an order enjoining him from future violations of the FCPA. In October 2006, Schnitzer paid $7.7 million in disgorgement to settle related charges by the Commission, and 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 its investigation. # # # For more information, contact: Marc J. Fagel Co-Acting Regional Director SEC’s San Francisco Regional Office (415) 705-2449 Cary S. Robnett Assistant Regional Director SEC’s San Francisco Regional Office (415) 705-2335 Additional materials: Litigation Release No. LR-20397 http://www.sec.gov/news/press/2007/2007-262.htm Home | Previous Page Modified: 12/13/2007