Springfield gun maker Smith and Wesson has reached a $2 million settlement with the federal Securities and Exchange Commission. The SEC charges the company with bribing officials from foreign countries in order to gain business.
According to the SEC, Smith and Wesson used third parties, who offered illegal payments and gifts to officials in Pakistan, Indonesia and other countries.
In the case of one Pakistani police department, the company gave more than $10,000 worth of firearms and other cash payments. Smith and Wesson eventually won a contract from that department, and made more than a $100,000 on the deal.
In a statement, Smith and Wesson says the $2 million settlement was in the best interest of the company and its shareholders.
Last year, Smith and Wesson reported net sales of more than $600 million, a record for the company.