UPDATE 1-Lawson Products to pay $30 mln fine -US prosecutor

(Adds those charged were dismissed by company)

CHICAGO, Aug 11 (Reuters) - Lawson Products Inc (LAWS.O), which sells tools and chemicals, has agreed to pay $30 million in forfeiture and restitution in the next three years in exchange for having a mail fraud charge dropped, the U.S. attorney in Chicago said on Monday.

Prosecutors have also charged 19 former employees at Lawson or its affiliates, including three on Monday, and accused them of taking part in a bribery and kickback scheme between 1992 and 2005. Twelve defendants have been convicted so far.

The illicit program involved sales agents working with purchasers to create phony incentives to increase the size of purchases.

In exchange for having a mail fraud charge against the company dropped in three years, Lawson will provide $10 million a year for a total forfeiture of $29.2 million and restitution of $822,000. (Reporting by Andrew Stern; Editing by Braden Reddall)