CHS Inc. disclosed in an SEC filing Monday that it self-reported possible FCPA violations related to Mexican customs payments.
The Minnesota-based agriculture company said in a 10-K that it voluntarily disclosed the potential violations to the DOJ and SEC.
The investigation is related to reimbursements the company paid to Mexican customs agents. The reimbursements were for payments the agents made to Mexican customs officials in 2014 and 2015.
CHS says it is fully cooperating with the investigation.
Here’s the text of the disclosure from CHS’s 10-K filing courtesy of FCPA Tracker:
In the fourth quarter of fiscal 2018, we contacted the U.S. Department of Justice and SEC to voluntarily self-disclose potential violations of the FCPA in connection with a small number of reimbursements the Company made to Mexican customs agents in the 2014-2015 time period for payments the customs agents made to Mexican customs officials in connection with inspections of grain crossing the U.S.-Mexican border by railcar. We are fully cooperating with the government, including with the assistance of legal counsel, which assistance includes investigating other areas of potential interest to the government. We are unable at this time to predict when our or the government agencies’ review of these matters will be completed or what regulatory or other outcomes may result.
CHS is owned by a farmer’s agricultural co-op and is on the Fortune 100. It employs 12,000 people and operates in grain, soybean, and sunflower production and transport, consumer food products, oil and gas, insurance, and commodities brokerage.
The FCPA Blog | December 3, 2018