In the Matter of Schnitzer Steel Industries, Inc. (2006) 

• Case Name
• In the Matter of Schnitzer Steel Industries, Inc. (2006) 

• Date Filed
• 10/16/2006

• Enforcement Agency
• SEC

• Countries
• Korea, South, China

• Foreign Official
• Managers of government customers.

• Date of Conduct
• 1999 to 2004

• Nature of Business
• Sale of scrap metal by SSI International Far East, Ltd. (“SSI Korea”), a wholly-owned South Korean subsidiary of Schnitzer Steel Industries, Inc. (“Schnitzer Steel”), a U.S. corporation.

• Influence to be Obtained
• From 1995 to August 2004, SSI Korea made payments to officers and employees of private customers in South Korea and private and government‑owned customers in China to induce them to purchase scrap metal.  The payments were made to foreign officials primarily in the form of commissions, refunds and gratuities via off‑book foreign bank accounts.

• Enforcement
• Schnitzer Steel consented to an SEC cease‑and‑desist order in which it agreed to pay disgorgement and prejudgment interest of $7.7 million and to retain a compliance monitor for three years.  In the DOJ proceeding, SSI Korea agreed to plead guilty to violating the anti‑bribery and accounting provisions of the FCPA and pay a $7.5 million penalty.  Schnitzer Steel entered into a three‑year deferred prosecution agreement and agreed to retain a compliance monitor for three years.

• Amount of the Value
• $204,537 (foreign officials) and $1,683,672 (private parties).

• Amount of Business Related to Payment
• Gross revenue of $96,455,350 and profits of $6,279,095 from government entities and gross revenue of $603,593,957 and profits of $55,327,840 from private entities.

• Intermediary
• None

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 7,725,201

• Compliance Monitor
• Yes

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 15,225,201

• Related Enforcement Actions
• United States v. SSI Int’l Far East, Ltd. (D. Or. 2006)
  In re Schnitzer Steel Industries, Inc. (2006)
  SEC v. Si Chan Wooh (D. Or. 2007)
  SEC v. Robert W. Philip (D. Or. 2008)
  United States v. Si Chan Wooh (D. Or. 2007)
  

Schnitzer Steel Industries, Inc.

• Citation
• In the Matter of Schnitzer Steel Indus., Inc., Admin. Proc. File No. 3-12456 (Oct. 16, 2006).

• Date Filed
• 10/16/2006

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States