RTTNews | Aug 31, 2020 02:32AM EDT

02:31 Monday, August 31, 2020 (RTTNews.com) - Herbalife Nutrition Ltd. (HLF) agreed to pay more than $123 million to settle charges that it bribed Chinese officials and violated its books and records, the U.S. Securities and Exchange Commission said in a statement.

The company agreed to pay more than $67 million to settle charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act. In addition, the company would pay a criminal fine of more than $55 million.

The SEC alleged that that Herbalife's Chinese subsidiaries made payments and provided meals, gifts, and other benefits to Chinese officials in connection with obtaining sales licenses, curtailing government investigations of Herbalife China, and removing negative coverage of Herbalife China in state-owned media.

The SEC also alleged that Herbalife China managers asked employees to falsify expense documents in an effort to conceal the improper payments.

The SEC order found that Herbalife executives received reports of high travel and entertainment spending in China and violations of Herbalife's internal FCPA policies, but failed to detect and prevent improper payments and benefits and the falsified expense reports.

The SEC order also found that the improper payments and benefits were recorded inaccurately in Herbalife's books and records and that Herbalife failed to devise and maintain a sufficient system of internal accounting controls.

Herbalife agreed to cease and desist from committing violations of the books and records and internal accounting controls provisions of the anti-bribery law. The company also agreed to report on the status of its remediation and compliance measures for a three-year period.

The SEC previously charged Herbalife China's then-Managing Director for his role in orchestrating the scheme to bribe Chinese government officials.

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