August 7, 2019

NY Fragrance company self-reports improper foreign payments

In a quarterly filing with the US Securities and Exchange Commission on August 5, 2019, International Flavors & Fragrances Inc. (IFF), a New York company that produces fragrances, cosmetics ingredients, and food flavoring, disclosed the preliminary results of an internal investigation launched after IFF’s acquisition of Frutarom Industries Ltd. (Frutarom).  According to IFF, during IFF’s integration of Frutarom into IFF, IFF became aware of allegations that “two Frutarom businesses operating principally in Russia and Ukraine” had made “improper payments.”  In its August 5 filing, IFF disclosed that the preliminary findings of its investigation were that improper payments had been made to “representatives of customers” and that members of Frutarom’s senior management were aware of the payments.  During its August 6 second quarter earnings call, IFF said that it had notified relevant US and Israeli regulatory authorities about the improper payments, and that IFF’s investigation is ongoing.

Form 10-Q