Ralph Lauren Bribery Case Forces Clothing Company To Pay $1.6 Million As Punishment

The Ralph Lauren bribery case came to an end Monday, as the corporation agreed to pay $1.6 million when it found out that its subsidiary in Argentina bribed customers.

The Ralph Lauren bribery case came about when the Argentinian subsidiary bribed custom officials "to improperly obtain paperwork necessary for goods to clear customs; permit clearance of items without the necessary paperwork and/or the clearance of prohibited items; and on occasion, to avoid inspection entirely," the Justice Department said in a statement.

Fake invoices were created to mask the payoffs, which totaled roughly $580,000, according to case documents.

Ralph Lauren Corp. said in a statement that the bribes were "wholly inconsistent with the culture of compliance and integrity that we have worked diligently to establish" in regards to the Ralph Lauren bribery case. 

The company reported its investigation to the federal authorities and will have to pay an $882,000 penalty as part of a non-prosecution agreement with the Justice Department, in addition to giving up roughly $735,000 in illicit profits and interest as part of a non-prosecution agreement with the Securities and Exchange Commission.

The SEC and Justice Department both praised the company's response to the misconduct during the Ralph Lauren bribery case.

"The [non-prosecution agreement] in this matter makes clear that we will confer substantial and tangible benefits on companies that respond appropriately to violations and cooperate fully with the SEC," the agency's acting enforcement director, George Canellos, said in a statement. 

"There was no evidence that the improper activity in Argentina was known or authorized by anyone outside of Argentina or that similar practices were occurring at other foreign operations," the Justice Department said in a statement.