Monsanto to pay $80 million civil penalty for Roundup-related accounting violations | Securities and Exchange Commission slapped Monsanto with penalty for violating accounting rules and misstating past earnings related to its weedkiller Roundup |
1. Monsanto CEO returns $3 million in bonuses after accounting error
2. Monsanto to pay $80 million civil penalty for Roundup-related accounting violations — 1. Monsanto CEO returns $3 million in bonuses after accounting error
by Ahiza Garcia
CNN, Feb 10 2016 http://gmwatch.us6.list- * This CEO is giving back to his company in a big way Monsanto (MON) CEO Hugh Grant voluntarily returned more than $3 million in bonuses and stock awards after an SEC [Securities and Exchange Commission] investigation found Monsanto had misstated earnings from its Roundup herbicide. Former CFO Carl Casale also returned over $700,000 that he received during the years in which earnings were misrepresented. The SEC investigation didn't take issue with either Grant or Casale individually, or require them to return the money. But it did find that three accounting and sales executives were at fault, each of whom were forced to pay a penalty of between $30,000 and $55,000. Monsanto didn't admit any wrongdoing, but it has been ordered to pay an $80 million fine. The agency found that Monsanto failed to account for the operating costs of a rebate program that ran from 2009 to 2011. The program was intended to help boost sales that were being hurt by competition from cheaper, generic herbicides. The program seemed to help sales get back on track, but that's because Monsanto wasn't taking into account how much the program cost. "This type of conduct, which fails to recognize expenses associated with rebates for a flagship product in the period in which they occurred, is the latest page from a well-worn playbook of accounting misstatements," SEC Chair Mary Jo White said. The St. Louis-based agriculture company has also been ordered to hire a compliance consultant to ensure future financial reporting is accurate. — 2. Monsanto to pay $80 million civil penalty for Roundup-related accounting violations
Lisa Brown
St. Louis Post-Dispatch, 10 Feb 2016 http://gmwatch.us6.list- The Securities and Exchange Commission slapped Monsanto with an $80 million civil penalty for violating accounting rules and misstating past earnings related to rebates on its flagship weedkiller Roundup. Two accounting executives and a retired sales executive also agreed to pay penalties to settle the charges. And while the SEC found no personal misconduct by Monsanto CEO Hugh Grant, the biotech seed giant disclosed Tuesday that Grant already had reimbursed the company $3.2 million in pay due to the restatement of corporate earnings in fiscal years 2009 through 2011. The penalty is another black eye for the Creve Coeur-based company, which has had a number of high-profile setbacks in the past year. During fiscal years 2009 to 2011, Monsanto booked “substantial” amounts of revenue from Roundup sales that had been spurred by the rebate programs, but the company failed to recognize all of the related costs in the proper year, the SEC said Tuesday. By pushing costs into another year, the company boosted its profitability — on paper. Corporations must be truthful in their earnings releases to investors to prevent misleading statements, SEC Chair Mary Jo White said in a statement. “This type of conduct, which fails to recognize expenses associated with rebates for a flagship product in the period in which they occurred, is the latest page from a well-worn playbook of accounting misstatements,” White said. As part of the settlement, Monsanto also agreed to retain an independent compliance consultant. Though settling the charges, Monsanto did not admit or deny the SEC allegations that it broke the law, according to the regulator’s press release. Monsanto began the accounting shenanigans in 2009, when Roundup was facing intense competition. In that year, a flood of inexpensive, generic, Chinese-made glyphosate, the key ingredient in Roundup, hit the market. Facing the prospect of a sharp decline in Roundup profits, Monsanto unleashed the rebate program to bolster sales. Anthony Hartke developed and Sara Brunnquell approved talking points for the sales force to use when encouraging retailers to take advantage of the rebate program in the fourth quarter of fiscal 2009, the SEC said. Both were accounting executives at the time, and the SEC said the two knew or should have known that the costs must be recorded that same year. But Monsanto delayed recognizing the costs until the following year, according to the regulator. The company also offered rebates to distributors that hit agreed-upon volume targets that year, but then didn’t record those costs until 2010. Under one scheme, Monsanto sales executive Jonathan Nienas arranged payment of $44.5 million in rebates to two of its largest distributors. Monsanto repeated the rebate program in 2010, and again improperly deferred the costs until 2011, the SEC said. The SEC first began investigating the company for the accounting irregularities in 2011. Later that year, company restarted its earnings for the fiscal years 2009 and 2010, and the first three quarters of 2011. “We have taken this matter very seriously and quickly moved in November 2011 to restate our financial statements … following an independent review of our accruals for customer incentive programs,” Monsanto said Tuesday in an emailed statement. “Today’s announced settlement does not require any changes to the company’s historical financial statements due to our proactive efforts.” The company added that it fully cooperated with the SEC in its investigation. The securities regulator also announced Tuesday that Hartke and Brunnquell were suspended from appearing and practicing before the SEC as accountants. Hartke also was fined $30,000, while Brunnquell was fined $55,000. Nienas was fined $50,000. Hartke and Brunnquell “have been reassigned to different roles within the company,” while Nienas retired years ago, Monsanto told the Post-Dispatch. The restatement led Grant and former CFO Carl Casale to reimburse the company for cash bonuses and certain stock awards they received during the restated periods. Grant paid back $3.2 million and Casale returned $728,843. The company declined to say when the money was paid back. During that three-year period, Grant earned $33.4 million in executive compensation, according to regulatory filings. If the two executives hadn’t paid back the money, the SEC said it could have sued to invoke a “clawback” provision under Sarbanes-Oxley that requires executives to pay back compensation during periods when accounting misstatements occurred, even if the executives didn’t engage in misconduct. Edward Jones equity analyst Matt Arnold said civil penalties by the SEC for accounting violations aren’t uncommon. “It happens surprisingly often,” Arnold said. “It reflects the flexibility that exists with accounting rules — it’s as much a science as art, and it’s subject to interpretation when it comes to reporting these items.” Wall Street appeared indifferent to the news. Monday’s stock edged up following the SEC’s announcement, closing Tuesday at $91.70 a share, up 0.5 percent from Monday’s closing price of $91.25. “There will be no financial implications for shareholders to worry about,” Arnold said. The company already had recorded the $80 million cost in its 2015 fiscal year. Still, the penalty comes when Monsanto already hit a rough patch in the past 12 months. In March, the cancer research arm of the World Health Organization declared glyphosate, Roundup’s key ingredient, as a probable carcinogen, a finding that the company is fighting. Five months later, Monsanto gave up on its efforts to take over Swiss rival Syngenta. And as agricultural prices continue to tumble, the company announced the start of an aggressive cost-cutting program that will eventually slash 16 percent of its workforce over the next two years.
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Hawaii is ground zero for GMOs. Having visited there recently, I felt for the residents as I drove down the streets. I saw a children’s center across the street from some chemically sprayed fields. I stopped and spoke to the moms whose children are sick and saw the struggle in their eyes. Paradise is being poisoned.
New reports show toxic chemicals are actually being found inside of homes in Maui. Hawaii is home to more than a thousand GMO test plots. In comparison, California, the largest agricultural state in America, has a little over one hundred. We would like to think the chemicals stay outside of our homes, but this is not the case.
Three houses in Paia were found to be contaminated inside with herbicides, according to local sources.
The Hawaii Department of Agriculture itself tested a home in Paia after a resident complained that nearby fields were over being sprayed. Their test results came back positive for 6 different kinds of herbicides in the bedrooms, the kitchen and on the trees in the yard. Dicamba, Diruron, 2,4-D, Pendimethanlin, Ametryn, and Hexazinone were all found inside of the home. Once again, the Department of Agriculture has failed to complete its investigation even though they have had more than 4 years to do so. They also decided not to warn nearby residents that their homes may have also been contaminated.
The Department of Agriculture is failing to evaluate the public health risks to Paia residents who were likely exposed to these harmful herbicides. The agricultural industry continues to say that these chemicals are safe for limited, one-time acute exposures at certain levels. However, there have been no scientific studies that have evaluated the health impacts on humans when combining these chemicals together. In addition, people who are living in homes that have been contaminated are being constantly exposed over time, as the residues are found on the walls, cabinets, furniture, and carpets. HC&S continues to spray near Paia Elementary School and this area still needs to be tested. A local group called Maui’s Dirty Little Secrets group revealed five different samples taken from one house, each from a different location in the home.
Leaders have joined with the locals in urging Paia residents to immediately call the Paia Elementary School principal as well as state Sens. Kalani and Baker to protect Hawaii residents from further health threats caused by overspraying.”
This statement is horrifying. The presence of these chemicals is a warning of almost imminent danger. Evangelos Valliantos, a former EPA employee of 29 years, recently wrote an article on the EPA’s failed tactics to manage toxic chemicals.
Valliantos shows how 2,4-D, one of the chemicals found in these Paia homes is a known toxin and the safety studies for many chemicals are completely fraudulent and falsified.
In Valliantos’ book Poison Spring, he says "the EPA should know better. In many instances, EPA couldn't trust the data of the chemical industry. For example, pesticide companies funded fraudulent testing of their chemicals for decades. A scientist of the Federal Drug Administration, Adrian Gross, discovered that fraud in 1976.”
Over a long period of time, many of these chemicals have been proven harmful in a multitude of ways like destroying gut bacteria and weakening the immune system. They also cause sex hormone changes, birth defects, miscarriages, DNA mutation, liver and kidney damage, reproductive organ mutations and more.
This is why Monsanto spent more than 8 million dollars on one county of Maui, to prevent an initiative to require a moratorium on GMO open air test plots until tests proved these chemical safe. They knew they couldn't or their GMO farming industry in Hawaii would be over.
The residents exposed to the 90 chemicals in 63 combinations that are sprayed up to 19 times a day, impact citizens, especially children, which could be permanently altered by the presence of these chemicals.
We all could be.
The fact is that these chemicals are not just in these resident's living room window sills in Hawaii. Many of these chemicals are on our food and in our homes in other parts of the country because we’ve allowed GMO chemical farming.
The uncomfortable reality is that the reason why these pesticides are being reported in Maui neighborhoods is because the GMO chemical companies want to spray them on our food all over the world.
They don’t wash off, dry off, or cook off.
We eat them, and our children eat them. These GMO test plots are where the chemical companies test and plan the chemical combinations to be sprayed on new GMOs. Many of these same chemical combinations are already being sprayed on our current GMOs, which make up 85-100% of crops like corn, soy, sugar, cottonseed oil, canola oil and smaller percentages of apples, potatoes, squash and bananas.
So this horrifying evidence of Hawaiians being poisoned in their own homes from pesticide residue is not only impactful because we feel for them and want justice for them. It’s also horrifying because what is happening to them is a glimpse of what is happening to all of us in North America and in many other parts around the world.
We are ALL consuming toxic chemicals on our food. Even those of us who are eating organic foods, because of drift and pollution in the air, water, soil and fertilizers. We are being poisoned by GMO chemical farming. Now is the time to stand up, speak up, and say no, in Hawaii and around the world.
It has to stop now.
Zen Honeycutt is founder of Moms Across America
Source: http://thehill.com/blogs/congress-blog/healthcare/264690-paradise-is-being-poisoned

Source: http://thehill.com/blogs/congress-blog/healthcare/264690-paradise-is-being-poisoned


