WPP to Pay $19 Million to Resolve SEC Charges of Anti-Bribery, Accounting Provisions
September 24 2021 - 10:00AM
Dow Jones News
By Chris Wack
The Securities and Exchange Commission said WPP Plc has agreed
to pay more than $19 million to resolve charges that it violated
the anti-bribery, books and records, and internal accounting
controls provisions of the Foreign Corrupt Practices Act.
According to the SEC's order, WPP implemented an aggressive
business growth strategy that included acquiring majority interests
in many localized advertising agencies in high-risk markets.
The SEC said WPP failed to ensure that these subsidiaries
implemented WPP's internal accounting controls and compliance
policies, instead allowing the founders and executive staff of the
acquired entities to exercise wide autonomy and outsized influence.
The order also found that, because of structural deficiencies, WPP
failed to promptly or adequately respond to repeated warning signs
of corruption or control failures at certain subsidiaries.
Without admitting or denying the SEC's findings, WPP agreed to
cease and desist from committing violations of the anti-bribery,
books and records, and internal accounting controls provisions of
the FCPA and to pay $10.1 million in disgorgement, $1.1 million in
prejudgment interest and an $8 million penalty.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
September 24, 2021 09:45 ET (13:45 GMT)
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