Consumer goods company 3M was fined over $6.5 million after violating the Foreign Corrupt Practices Act.
Its China-based subsidiary took Chinese officials on trips to convince them to purchase its products.
The trips occurred between 2014 and 2017, which included overseas conferences, tours, shopping, and other activities.
While the employees of the subsidiary created itineraries with valid events and other events, the employees asked the individuals to keep the alternate events secret.
The employees warped internal documents to keep the secret, according to the U.S. Securities and Exchange Commission (SEC).
3M’s shareholders include BlackRock, Vanguard, and State Street.
Reporting from Just the News:
The Chinese subsidiary of 3M paid nearly $1 million to fund at least 24 trips that included tourist activities for Chinese government officials, the agency said. Additionally, between February 2016 and September 2018, employees of 3M's subsidiary arranged for the company to transfer $254,000 directly to a Chinese travel agency for some of its tourism activities.
