Smith & Wesson Hit for Overseas Bribes

smith_wesson

Gun maker Smith & Wesson has found itself on the wrong side of the law while trying to sell guns to police officials overseas.

The Massachusetts-based company has agreed to pay the U.S. government $2 million for bribing officials in Pakistan, Indonesia and other countries as it tried to sell firearms to military and law enforcement agencies.

The Securities and Exchange Commission says the violations took place between 2007 and 2010. The agency says Smith & Wesson has also agreed to halt any related sales transactions and fire its international sales staff.

In one case, the SEC says Smith & Wesson provided more than $11,000 worth of guns as a gift to Pakistani police officials there. That deal won the gun maker a contract to sell 548 pistols to the police department for a profit of $107,852.

While that was the only corrupt contract ultimately fulfilled, the SEC says the company also tried to secure sales contracts by bribing officials at an Indonesian police department, as well as foreign officials in Turkey, Nepal and Bangladesh. Third-party agents within those countries were used to broker the deals.

Smith & Wesson CEO James Debney said in a statement that the company consented to the settlement without admitting or denying the agency’s findings.

In addition to the $2 million payment, the company has implemented new procedures concerning its overseas business practices. It will report back to the SEC on its compliance efforts for the next two years.

The federal agency said it took the company’s cooperation into consideration when determining the penalties.

While the industry has seen a run-up in demand in recent years from Americans fearful of stricter gun restrictions, that trend may be slowing. Smith & Wesson reported a drop in sales during its most recent quarter and lowered its forecast.

8 comments

  • BrutallyHonest

    How is this any different than anti gun groups or Pharmaceutical companies bribing politicians to vote in their favor on bills? Or Pharmaceutical companies from giving doctors free samples of medications to give out?

    • Dean Thomas

      It is the same. And seemingly the normal way of doing business in third world and near-third world countries. Makes me glad to live the the US. Not perfect, but far better than the rest.

    • William Denison

      Mike Cee your a freak. Quit posting useing my name. There is one firearm for every 12 people on this planet. There is more ammo for these guns then can be fire in a years time nonstop. There are 4 C’s for those types of people who own guns. Cops, creeps, cowboys and cowards.

      • No More Tea Bags

        William: Agree with you 95%… particularly on the coward subject. Only carried while in the Air Force, and that was 34 years ago. Only guns I’ve ever needed hang from my shoulders. I’ve had 3 people pull a gun on me and they backed down every time. They know Big Bubba is waiting for them if they shoot an unarmed man. Real mean mfer until they give that a thought, or the thought of getting beat into oblivion. I know I’m hard to hit, been shot at before; most of them never shot at a human and will be more dangerous to everyone else, than to me.

      • Jay

        William, maybe people would agree with you more if you used better grammar than a fifth grader. FYI, you were trying to use you’re not your and useing is actually spelled using.

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