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U.S. Department of Justice
Criminal Division
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| Fraud Section |
Bond Building
1400 New York Avenue, NW
Washington, D.C. 20530
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| August 5, 2020 |
Mark E. Schamel
Robert R. Ambler, Jr.
James E. Connelly
Womble Bond Dickinson LLP
1200 Nineteenth St. NW, Suite 500
Washington D.C., 20036
Re: World Acceptance Corporation Dear Counsel,
Consistent with the FCPA Corporate Enforcement Policy, the Department of Justice, Criminal Division, Fraud Section, and the United
States Attorney's Office for the Southern District of New York (collectively, the "Department") has declined prosecution of your client, World Acceptance Corporation ("World" or the "Company") for violations of the Foreign Corrupt Practices Act (the
"FCPA"), 15 U.S.C. §§ 78dd-l, et seq. We have reached this conclusion despite the bribery committed by employees of the Company and its
subsidiaries in Mexico.
The Department's investigation found evidence that beginning in 2010 and continuing through 2017, World's Mexican subsidiary, through
its employees and agents, paid over $4,000,000 to third-party intermediaries that was used, in part, to pay bribes to Mexican union officials and state government officials in order to obtain contracts with Mexican unions and Mexican state
governments that allowed World to make loans to union members and to receive payments on such loans directly from the unions, which withheld the amount of the loan repayment from the paychecks of the union members.
The Department has decided to decline prosecution of this matter based on an assessment of the factors set forth in the Corporate
Enforcement Policy, Justice Manual ("JM") 9-47.120, and the Principles of Federal Prosecution of Business Organizations, JM 9-28.300, including but not limited to: (1) World's prompt, voluntary self-disclosure of the misconduct; (2) World's full and
proactive cooperation in this matter (including its provision of all known relevant facts about the misconduct); (3) the nature and seriousness of the offense; (4) World' s full remediation, including the additional FCPA training added to World's
compliance program, separation from executives under whom the misconduct took place; and discontinuing relationships with third parties in Mexico involved in the misconduct; and (5) the fact that World agrees to and will disgorge to the U.S.
Securities and Exchange Commission the full amount of its ill-gotten gains.
This letter agreement does not provide any protection against prosecution of any individuals, regardless of their
affiliation with World. If the Department learns information that changes its assessment of any of the factors outlined above, it may reopen its inquiry.
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Sincerely,
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ROBERT ZINK
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Chief, Fraud Section
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Criminal Division
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Department of Justice
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BY: |
/s/ Sarah E. Edwards
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SARAH E. EDWARDS
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SONALI D. PATEL
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BENJAMIN A. SALTZMAN
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Trial Attorneys, Fraud Section
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World Acceptance Corporation agrees and consents to the facts and conditions set forth herein:
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The Date: 8/5/2020
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BY:
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/s/ Luke J. Umstetter
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LUKE J. UMSTETTER
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General Counsel, World Acceptance Corp.
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