SEC v. Si Chan Wooh (D. Or. 2007)

• Case Name
• SEC v. Si Chan Wooh (D. Or. 2007)

• Date Filed
• 07/24/2007

• Enforcement Agency
• SEC

• Countries
• China, Korea, South

• Foreign Official
• Managers of government and private customers.

• Date of Conduct
• 1995 to 2004

• Nature of Business
• Si Chan Wooh was the Executive Vice President and head of SSI International Inc., a U.S.-based subsidiary 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
• From 1995 to August 2004, Wooh allegedly conspired with Schnitzer Steel, SSI, and SSI International Far East, Ltd. (a South Korea‑based wholly‑owned subsidiary of Schnitzer managed by SSI) to make payments to officers and employees of government‑owned customers in China and to managers of privately‑owned customers in China and South Korea 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
• On June 29, 2007, the SEC brought a complaint against Wooh, alleging violations of the anti‑bribery provisions of the FCPA and aiding and abetting violations of the books and records provisions of the FCPA.  On that same day, without admitting or denying the allegations of the SEC’s complaint, Wooh agreed to pay approximately $40,000 in disgorgement, interest, and civil penalties.  Wooh also pleaded guilty to violating the FCPA in a related criminal prosecution brought by the DOJ.  On October 17, 2011, the court granted a motion made by the DOJ to dismiss the criminal information against Wooh.

• Amount of the Value
• Approximately $205,000.

• Amount of Business Related to Payment
• Approximately gross revenue of $96 million and net profits of approximately $6.3 million.

• Intermediary
• Not Stated

• Total Sanction
• $ 41,131

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Related Enforcement Actions
• 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) 
  SEC v. Robert W. Philip (D. Or. 2008)
  United States v. Si Chan Wooh (D. Or. 2007)
  

Si Chan Wooh 

• Citation
• SEC v. Wooh, No. 07-cv-957 (D. Or. 2007).

• Date Filed
• 07/24/2007

• Filed Under Seal
• No

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

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer