The Vice Chairman of Avon, Charles Cramb… FIRED, terminated, adios.
Head of Avon Audit and Securities, Ian Rosetter… FIRED, terminated, adios.
Avon manager of the China unit, the Avon China CFO, and the head of corporate affairs.. FIRED, terminate, adios.
Avon CEO, Andrea Jung, stepping down.
I guess that’s what happens when you pay off Chinese government employees with MILLIONS of US dollars in exchange for contracts there, and then get found with your hand in the cookie jar, and shove the whole thing under the coffee table to your board of directors. OH and hey, why not Brazil, and Mexico and a few others to boot.
Let me be ultra clear… this is ALLEGED. I don’t want to get sued by anyone.
According to the DOJ, Avon’s own internal audits caught the *ehem* discrepancies, but failed to tell anyone about it.
The FBI, the SEC and the DOJ just paraded the whole thing in front of a grand jury because, if it’s true, Avon totally busted the Foreign Corrupt Practices Act.
So far, Avon has spent another $340 million dollars of YOUR money on legal fees, and has placed another $82 million on ice for a settlement ..(they offered 12 mil, and the gov said no way jose)
Now Avon is working on putting another 40 or so million aside in anticipation of an impending $132 million dollar settlement.
What’s my point? Well Avon says they have enough cash to cover the entire half a billion dollar loss!!!!!!!! but what really crams me on the subject is this.
Avon has been one of the larger US proponents telling women that Paraben in cosmetics is perfectly safe, even though there is gobs of research showing it grows breast cancer.
So let me get this straight…. Avon pays off China for more contracts, it makes it’s products, makes enough money from the United States public to cover 500 million no sweat.. but uses Paraben to preserve it’s products so they CAN make that much money… then tells YOU it’s safe… all the while riding the Susan G Komen Pink Koolaid Wave to the bank (even though they aren’t affiliated ((http://www.avonwalk.org/press/avon-foundation-for-women-response-to-recent-inquiries-about-breast-cancer-funding-support.html)) – while 27 year old women develop breast cancer?
Who to trust, who to trust…. hmmmm