SEC v. Con way Inc. (D.D.C. 2008)
In the Matter of Con way Inc. (2008)

• Case Name
• SEC v. Con way Inc. (D.D.C. 2008)
  In the Matter of Con way Inc. (2008)

• Date Filed
• 09/03/2008

• Enforcement Agency
• SEC

• Countries
• Philippines

• Foreign Official
• Officials of the Philippines Bureau of Customs; officials at the Philippine Economic Zone Area; officials and fourteen state-owned airlines.

• Date of Conduct
• 2000 to 2003

• Nature of Business
• Shipping logistics.

• Influence to be Obtained
• Emery Transnational, a former subsidiary of Con‑way Inc., based in the Philippines allegedly paid $244,000 in improper payments to officials of the Philippines Bureau of Customs and the Philippines Economic Zone area.  These payments allegedly consisted of hundreds of small payments designed to induce officials to violate customs regulations, settle customs disputes, and reduce or not enforce legitimate fines.
  
  In addition to the payments to customs officials, Emery also allegedly paid approximately $173,000 in cash to officials of state‑owned airlines that did business in the Philippines between 2000 and 2003 to induce the airline officials to either improperly reserve space for Emery Transnational on their airplanes (called “weight shipped”) payments or to induce the airline officials to falsely under‑weigh the shipments, resulting in lower shipping charges (called “gain share” payments).

• Enforcement
• On August 27, 2008, without admitting or denying the allegations in the SEC’s complaint, Con‑way agreed to pay a civil penalty of $300,000.  On the same day, the Commission issued a settled cease‑and‑desist order that requires the company to cease and desist from causing or committing any future FCPA violations.  Con‑way consented to the issuance of the order without admitting or denying any of the Commission’s findings.

• Amount of the Value
• $417,000.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• None

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 300,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 300,000

Con-way Inc.

• Citation
• SEC v. Con-Way Inc., No. 1:08-cv-01478 (D.D.C. 2008); In the Matter of Con-way Inc., Admin. Proc. File No. 3-13148 (Aug. 27, 2008).

• Date Filed
• 09/03/2008

• Filed Under Seal
• No

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

• Other Statutory Provision
• Circumventing Internal Controls/Falsifying Books and Records.

• Disposition
• Cease-and-Desist Order, Complaint and Consent Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States