SEC v. Bobby J. Elkin, Jr., Baxter J. Myers, Thomas G. Reynolds, and Tommy L. Williams (D.D.C. 2010)
Case Details
- Case Name
- SEC v. Bobby J. Elkin, Jr., Baxter J. Myers, Thomas G. Reynolds, and Tommy L. Williams (D.D.C. 2010)
- Countries
- Kyrgyzstan, Thailand
- Foreign Official
- Tamekisi, the Kyrgyzstan governmental agency responsible for issuing tobacco export licenses, officials and Thailand Tobacco Monopoly (“TTM”) officials.
- Date of Conduct
-
1994 to 2004
- Nature of Business
- The four defendants were executives at Dimon, Inc., which engaged in the purchase and fermentation of tobacco in Kyrgyzstan through its wholly-owned local subsidiary, Dimon International Kyrgyzstan (“DIK”), and sale to the Thailand Tobacco Monopoly (“TTM”), a government-owned entity.
Bobby Elkin was the country manager for DIK between 1996 and 2004.
Baxter Myers was Dimon’s Regional Financial Director for the European and Asian Region from 1994 to 1997. He then became the Regional Financial Director of Asia until 2004.
Thomas Reynolds was Dimon’s International Controller in the U.K. between 1997 and 2001, and then he became the company’s Corporate Controller in the U.S. until 2008.
Tommy Williams was Dimon’s Senior Vice President of Sales from 1995 to 2005, with responsibility for tobaccos sales to TTM between 2000 and 2004.
- Influence to be Obtained
- According to the complaint filed by the SEC, Bobby J. Elkin, Jr., a former Dimon country manager for Kyrgyzstan, authorized, directed, and paid bribes in Kyrgyzstan through a bank account in his name referred to as the “Special Account.” The payments were made to obtain export licenses and gain access to government tobacco processing facilities. The SEC’s complaint further alleges that defendant Baxter J. Myers, a former Dimon Regional Financial Director, authorized all fund transfers from another Dimon subsidiary’s bank account to the “Special Account” and that Thomas G. Reynolds, a former Dimon Corporate Controller, formalized the accounting methodology used to record the payments made from the “Special Account” for purposes of Dimon’s internal reporting.
Dimon allegedly paid bribes of approximately $542,590 to government officials of the TTM in exchange for obtaining approximately $9.4 million in sales contracts. Tommy L. Williams, a former Dimon Senior Vice President of Sales, allegedly directed the sales of tobacco from Brazil and Malawi to the TTM through Dimon’s agent in Thailand and authorized the payment of bribes to officials at the TTM. These bribes were characterized in Dimon’s books and records as “commissions” to Dimon’s agent in Thailand.
- Enforcement
- The SEC alleged the four defendants violated or aided and abetted violations of the anti‑bribery provisions of the FCPA. On August 26, 2010, without admitting or denying the allegations in the SEC’s complaint, the defendants consented to the entry of final judgments permanently enjoining each of them from violating the anti‑bribery provisions of the FCPA. Myers and Reynolds were ordered to pay monetary penalties of $40,000 each. In a separate proceeding, Dimon’s successor, Alliance One International consented to the entry of a final judgment against it and agreed to pay $10 million in disgorgement.
- Amount of the Value
- Over $3.2 million.
- Amount of Business Related to Payment
- Over $9.4 million.
- Intermediary
- Sales agents.
- Reporting Requirements
- No
- Total Combined Monetary Sanction
- $ 80,000
Defendants
Bobby J. Elkin, Jr.
- Citation
- SEC v. Elkin, Jr., et al., No. 1:10-cv-00661 (D.D.C. 2010).
- FCPA Statutory Provision
-
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- None
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
Baxter J. Myers
- Citation
- SEC v. Elkin, Jr., et al., No. 1:10-cv-00661 (D.D.C. 2010).
- FCPA Statutory Provision
-
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- None
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
- Individual Sanction
- $40,000.
Thomas G. Reynolds
- Citation
- SEC v. Elkin, Jr., et al., No. 1:10-cv-00661 (D.D.C. 2010).
- FCPA Statutory Provision
-
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- None
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
- Individual Sanction
- $40,000.
Tommy L. Williams
- Citation
- SEC v. Elkin, Jr., et al., No. 1:10-cv-00661 (D.D.C. 2010).
- FCPA Statutory Provision
-
- Aiding and Abetting: Books-and-Records
- Aiding and Abetting: Internal Controls
- Other Statutory Provision
- None
- Disposition
- Complaint and Consent Order
- Defendant Jurisdictional Basis
- Agent of Issuer
