In re Ralph Lauren Corporation (2013)

• Case Name
• In re Ralph Lauren Corporation (2013)

• Date Filed
• 04/22/2013

• Enforcement Agency
• SEC

• Countries
• Argentina

• Foreign Official
• Argentine customs officials and other government officials.”

• Date of Conduct
• 2005 to 2009

• Nature of Business
• Ralph Lauren Corporation (“RLC”), a Delaware corporation headquartered in New York, is in the business of design, marketing, and distribution of apparel, accessories, and other consumer products around the world.  Its common stock is registered pursuant to Section 12(b) of the Securities Exchange Act. 

• Influence to be Obtained
• According to the statement of facts attached to the SEC’s non-prosecution agreement with RLC (which RLC neither admits nor denies), the Argentine subsidiary of RLC allegedly paid bribes and gifts from 2006 to 2009 to Argentine customs officials to assist in improperly obtaining paperwork necessary for its products to clear customs, permit clearance of items without the necessary paperwork, permit clearance of prohibited goods, and avoid inspection of products by Argentine customs officials.  The payments were made through a customs broker, who passed the bribes on to customs officials.  The gifts, which were given directly to Argentine government officials to secure the importation of RLC’s goods into Argentina, included perfume, dresses, and handbags valued at between $400 and $14,000 each.

• Enforcement
• On April 18, 2013, RLC entered into a non-prosecution agreement with the SEC under which it paid $734,846 in disgorgement and prejudgment interest.  RLC has since ceased its operations in Argentina.
  
  In a press release, the SEC explained that it granted its first-ever FCPA-related non-prosecution agreement due to RLC’s “prompt reporting of the violations . . . completeness of the information it provided, and its extensive, thorough, and real-time cooperation with the SEC’s investigation.” 
  
  In a related criminal action, RLC entered into a non-prosecution agreement with the DOJ, under which the company agreed to pay a monetary penalty of $882,000.

• Amount of the Value
• $538,000.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• Customs Broker

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 734,846

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 1,616,846

• Related Enforcement Actions
• In re Ralph Lauren Corporation (2013)
  

Ralph Lauren Corporation 

• Citation
• In re Ralph Lauren Corporation(SEC Apr. 22, 2013) (non-prosecution agreement).

• Date Filed
• 04/22/2013

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Non-Prosecution Agreement

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States