The SEC's recent settlement with Deere & Company for $9.9 million for FCPA violations is another textbook example of bribery schemes, which revealed the absence of a culture of compliance, and the circumvention of basic entertainment, hospitality and travel expense controls. In this episode of Corruption, Crime, and Compliance, Michael Volkov breaks down the SEC’s $9.9 million settlement with Deere & Company following widespread FCPA violations by its subsidiary, Wirtgen Thailand. Michael discusses how the bribery schemes, involving government officials in Thailand, reveal significant failures in compliance oversight and corporate governance, while also highlighting the critical lessons for businesses aiming to avoid similar pitfalls. Key Insights: Deere’s subsidiary, Wirtgen Thailand, secured government tenders through cash bribes, entertainment at massage parlors, and lavish trips for officials from the Royal Thai Air Force (RTAF), Department of Highways (DOH), and Department of Rural Roads (DRR).Wirtgen disguised entertainment and bribe payments in expense reports with vague descriptions and round-number amounts, which were improperly approved by regional managers.Wirtgen organized extravagant trips disguised as factory visits for Thai officials, which included sightseeing and luxury hotels in Europe. These trips were arranged to win government tenders but involved no legitimate business activities.Bribes were also funneled through a third-party consultant via sham commission agreements. This consultant acted as a middleman, facilitating bribe payments to government officials to secure high-value tenders.Deere's failure to fully integrate Wirtgen into its compliance program after acquisition allowed the bribery schemes to continue. This highlights the risks of not harmonizing compliance protocols in newly acquired subsidiaries.In response to the SEC investigation, Deere terminated employees involved in the misconduct, revamped its compliance program, and introduced initiatives like a bi-monthly compliance newsletter and enhanced anti-bribery training. Resources: Michael Volkov on LinkedIn | Twitter The Volkov Law Group