Gunmaker Smith & Wesson Is Paying $2 Million To Settle Corruption Charges

AFP

Gunmaker Smith & Wesson has agreed to pay $2 million to settle with the Securities and Exchange Commission over allegations the company violated the Foreign Corrupt Practices Act.

The SEC said employees and representatives of the company, "authorized and made improper payments to foreign officials while trying to win contracts to supply firearm products to military and law enforcement overseas."

The SEC said it found that Smith & Wesson employees made improper payments to secure a weapons contract in Pakistan, and also made similar but failed attempts in Indonesia, Turkey, Nepal, and Bangladesh.

Smith & Wesson consented to the SEC's order without admitting or denying the findings. The company must also report to the SEC on its FCPA compliance for the next two years.

In afternoon trade, shares of Smith & Wesson were up about 0.4%.