The former CEO of a Chilean-based chemical and mining company agreed to pay $125,000 to settle SEC charges of violating the books and records and internal accounting control provisions of the Foreign Corrupt Practices Act ("FCPA"), materially misleading auditors and signing false certifications filed with the SEC.
According to an SEC Order, Patricio Contesse González, while acting as CEO of Sociedad Química y Minera de Chile S.A. ("SQM"), caused SQM to make $14.75 million in improper payments to various Chilean politicians and political candidates (collectively, politically exposed persons or "PEPs"). The SEC claimed that most of the improper payments involved fake documents submitted to SQM on behalf of third-party vendors associated with the PEPs who posed as legitimate vendors. Mr. González, according to the SEC, directed and signed off on these improper payments to PEPs based on false documents. SQM previously agreed to pay more than $30 million in criminal and civil penalties to resolve allegations that it violated the FCPA.
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