Smith & Wesson (SWHC) has agreed to pay a $2 million bribery charge from the U.S. Securities and Exchange Commission (SEC).
The firearms company was fined $2 million by the SEC for allegedly paying out foreign officials between 2007 and 2010. Smith & Wesson allegedly bribed military and political officials in Pakistan and Indonesia to win firearm supply contracts there.
The SEC claims that the company violated the Foreign Corrupt Practices Act (FCPA) and made over $100,000 from one contract that included improper payments. Smith & Wesson will pay the $2 million fine and report to the SEC for two years regarding its FCPA compliance efforts over that span.
The company has not admitted nor denied the SEC’s charges but it has responded to the penalty by firing its entire international sales staff.
SWHC stock is down about 0.65% Monday afternoon.
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