US grand jury probes Avon China bribes

A New York-based grand jury is investigating whether ex-employees in China of Avon (AVP.NYSE), the world’s biggest door-to-door cosmetics firm, paid bribes to government officials, Bloomberg reported, citing a source familiar with the situation. Avon said in regulatory filings it fired four executives last year suspected of corruption, including the general manager and financial head of its China unit. The firm is conducting its own internal probe of entertainment and gift expenses “in connection with our business dealings, directly or indirectly, with foreign governments.” An internal audit reportedly found hundreds of thousands of dollars in questionable payments to Chinese officials in 2005. The US Securities and Exchange Commission is also investigating if the charges run afoul of the US Foreign Corrupt Practices Act, the firm said in October.