In the Matter of Nu Skin Enterprises, Inc. (2016) 

• Case Name
• In the Matter of Nu Skin Enterprises, Inc. (2016) 

• Date Filed
• 09/20/2016

• Enforcement Agency
• SEC

• Countries
• China

• Foreign Official
• High ranking Chinese Communist Party official and representatives of a provincial Chinese enforcement authority.

• Date of Conduct
• 2013

• Nature of Business
• Nu Skin is a Delaware corporation based in Provo, Utah that manufactures and markets cosmetic and nutritional products.  Nu Skin maintains a class of common stock that is registered with the SEC and listed on the New York Stock Exchange.

• Influence to be Obtained
• According to the SEC, in 2013 Nu Skin’s wholly owned Chinese subsidiary (“Nu Skin China”) allegedly violated Chinese domestic laws by hosting an unauthorized promotional event in an unnamed Chinese province.  As a result, representatives of the provincial Administration of Industry and Commerce (“AIC”) initiated an investigation into the company’s operations. 
  
  Before the AIC investigation concluded, Nu Skin China personnel decided to initiate a charity project in the province in an effort to dissuade the AIC from sanctioning the company and protect future business interests.  As a result, Nu Skin China donated RMB 1 million to a charity controlled by a high ranking Communist party official.  Nu Skin China also assisted the party official’s child to obtain college recommendation letters from an “influential U.S. person.”  After making the donation and assisting the party official’s child obtain letters of recommendation, Nu Skin China allegedly asked the party official to convince the AIC to not name or fine Nu Skin China.  Shortly thereafter, Nu Skin China received notice of the AIC’s final decision in which the company was neither charged nor fined.

• Enforcement
• On September 20, 2016, the SEC announced that it had settled an enforcement action against Nu Skin for violations of the FCPA’s books-and-records and internal controls provisions.  According to the cease-and-desist order, Nu Skin agreed to pay a total sanction of $765,688.

• Amount of the Value
• RMB 1 million (approximately $154,000).

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• None

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 765,688

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 765,688

Nu Skin Enterprises, Inc. 

• Citation
• In the Matter of Nu Skin Enterprises, Inc., Admin. Proc. File No. 3-17556 (Sept. 20, 2016).

• Date Filed
• 09/20/2016

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States