SEC v. Robert W. Philip (D. Or. 2008)

• Case Name
• SEC v. Robert W. Philip (D. Or. 2008)

• Date Filed
• 02/19/2008

• Enforcement Agency
• SEC

• Countries
• China, Korea, South

• Foreign Official
• Managers of private and government-owned steel mills.

• Date of Conduct
• 1999 to 2004

• Nature of Business
• Robert Philip is the former President, CEO, and Chairman of Schnitzer Steel Industries, a U.S. corporation that sells scrap metal to steel mills.  Schnitzer’s common stock was registered with the SEC and listed on the NASDAQ National Market.

• Influence to be Obtained
• The SEC’s complaint alleges that, from at least 1999 through 2004, Philip authorized payments of cash bribes and other gifts to managers of government‑owned steel mills in China to induce them to purchase scrap metal from Schnitzer.  Philip also allegedly authorized payments to managers of privately owned steel mills in both China and South Korea.  The payments were allegedly made in the form of cash or gifts.

• Enforcement
• On December 13, 2007, the SEC brought a settled civil suit charging Philip with authorizing the payment of the bribes, aiding and abetting Schnitzer’s failure to keep accurate books and records, and failing to implement internal controls.  The complaint alleges that the profits from the illicit payments caused Philip to receive “excess bonus compensation.”  Without admitting or denying the allegations, Philip settled the matter by agreeing to disgorge $169,864 in bonuses and pay $16,537 in prejudgment interest and pay a civil penalty of $75,000, in addition to agreeing to an order enjoining him from future violations.

• Amount of the Value
• $205,000 (foreign officials) and $1.7 million (private parties).

• Amount of Business Related to Payment
• $500 million.

• Intermediary
• Not Stated

• Total Sanction
• $ 261,400

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

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

Robert W. Philip 

• Citation
• SEC v. Philip, No. 07-cv-1836 (D. Or. 2008).

• Date Filed
• 02/19/2008

• Filed Under Seal
• No

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

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

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer