Avon China Bribery Case: Foreign Bribe Case at Avon Presented to Grand Jury

Discussion in 'China' started by maomao, Feb 13, 2012.

  1. maomao

    maomao Veteran Hunter of Maleecha Senior Member

    Apr 7, 2010
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    Federal prosecutors investigating whether U.S. executives at Avon Products Inc. broke foreign-bribery laws have presented evidence in the probe to a grand jury, people familiar with the matter said.

    Authorities are focused on a 2005 internal audit report by the company that concluded Avon employees in China may have been bribing officials in violation of the Foreign Corrupt Practices Act, according to three people familiar with the matter. Avon had earlier said it first learned of bribery allegations in 2008.

    The audit found several hundred thousand dollars in questionable payments to Chinese officials and third-party consultants in 2005, one of these people said. It came as Avon was pursuing a license to conduct door-to-door sales in China. Some of the payments were recorded on invoices as gifts for government officials, the person said. Avon secured China's first such license to a foreign company in 2006.

    Read More: Foreign Bribe Case at Avon Presented to Grand Jury - WSJ.com

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