World Acceptance Corporation To Pay $21.7 Million To Resolve SEC’s Claims Of Bribes Paid In Mexico. Exposing Misconduct.

World Acceptance Corporation To Pay $21.7 Million To Resolve SEC’s Claims Of Bribes Paid In Mexico

August 19, 2020

The World Acceptance Corporation (WAC) has agreed to pay $21.7 million to resolve claims that its former subsidiary, WAC de Mexico S.A. de C.V., paid bribes to officials for over seven years, a violation of the Foreign Corrupt Practices Act. WAC, a consumer loan company from South Carolina, allegedly paid bribes to Mexican Union and Government officials to ensure that its personal loans would be paid in full and on time, a violation of the FCPA’s anti-bribery provision. The Securities and Exchange Commission (SEC) claims that WAC Mexico intentionally kept inaccurate records and failed to run effective internal auditing or compliance systems from 2010 to 2017. WAC allegedly paid the bribes either by depositing money into official’s bank accounts or by an intermediary for the company delivering and distributing cash between the officials. The bribes were then written off in WAC Mexico’s accounting books as business expenses.

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