Ralph Lauren Settles Corruption Probe

Ralph Lauren Settles Corruption Probe

Ralph Lauren Corp.'s mea culpa over foreign bribes will cost it about $1.6 million but likely save it far more in penalties, effort and time.

The company will pay the U.S. Department of Justice $882,000 and the Securities and Exchange Commission nearly $735,000 to settle claims that it violated the Foreign Corrupt Practices Act when a manager at its subsidiary in Argentina offered bribes to government officials to avoid inspection and Customs requirements between 2005 and 2009.

"The misconduct was uncovered in an internal review undertaken by the company and promptly reported to the SEC," according to the government agency.

The non-prosecution agreement with the SEC is the first such arrangement involving Foreign Corrupt Practices Act misconduct and also the first in the eastern district of New York for the Justice Department. A similar deal was struck with the DOJ. Non-prosecution agreements are rewarded in instances in which companies or individuals cooperate in investigations, saving agencies considerable cost and time. According to the NPA, the company brought the violations to the attention of federal authorities within two weeks of their discovery.

"When they found a problem, Ralph Lauren Corp. did the right thing by immediately reporting it to the SEC and providing exceptional assistance in our investigation," said George Canellos, acting director of the SEC's division of enforcement. "The NPA in this matter makes...