A&O Shearman FCPA Digest | SEC v. Charles Michael Martin (D.D.C. 2007)

Source Documents

Nature of Business
Monsanto Co., a U.S. corporation, is a global producer of technology and agricultural products, including for the cultivation of genetically modified crops in Indonesia. Charles Michael Martin (“Martin”), a U.S. citizen, was a former employee of Monsanto.

Influence to be Obtained
Martin was employed in 2002 by Monsanto as its Government Affairs Director for Asia. In that capacity, he authorized and directed an Indonesian consulting firm to pay a $50,000 bribe to a local Indonesian government official to induce the official to repeal a government decree. The decree required an environmental impact assessment study prior to cultivation of certain agricultural products, and would have prevented Monsanto from cultivating certain of its genetically modified crops in Indonesia. Martin directed the consulting firm to create a set of invoices to falsely bill Monsanto and subsequently approved the invoices and caused Monsanto to falsify its books and records, thus, violating and aiding and abetting violations of the anti‑bribery and books and records provisions of the FCPA.

Enforcement
On February 28, 2007, without admitting or denying the allegations against him, Martin agreed to pay a fine of $30,000 and to an injunction not to violate the FCPA. In a related earlier case, on January 6, 2005, Monsanto entered into a non‑prosecution agreement with DOJ and a settlement agreement with the SEC. As part of the settlement, Monsanto agreed to, among other things, pay a fine of $1.5 million and to appoint independent consultants to review its business practices over a three‑year period, when the criminal charges against it would be dropped permanently by DOJ. Several Monsanto employees in Indonesia were fired.