A Charitable Donation to Avoid a Fine in China Nets Nu Skin an SEC Fine Instead

Efforts to evade a Chinese sanction have resulted in an SEC penalty for a health and beauty company based in Provo, Utah. Nu Skin Enterprises, Inc., a manufacturer and direct marketer of cosmetics and nutritional products, has agreed to settle allegations that its subsidiary donated approximately $154,000 to a charity in order to influence a regulatory decision. The company will pay disgorgement in the amount of the fine it avoided paying – $431,088 – plus a $300,000 penalty, according to the SEC’s cease-and-desist order. See “Ten Strategies for Avoiding FCPA Violations When Making Charitable Donations” (Jul. 11, 2012).

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