Diageo paid more than $16 million to settle SEC foreign-bribery accounting charges
Company: Diageo plc
Summary
The U.S. Securities and Exchange Commission found that Diageo plc violated the Foreign Corrupt Practices Act's books-and-records and internal-controls provisions in connection with improper payments made through subsidiaries in India, Thailand and South Korea. The SEC stated that more than $2.7 million in improper payments were made to obtain sales and tax benefits. It also found that the payments were improperly recorded, concealed as legitimate expenses or described using false or overly vague accounting entries. Without admitting or denying the SEC's findings, Diageo agreed to pay $11,306,081 in disgorgement, $2,067,739 in prejudgment interest and a $3 million civil penalty—more than $16 million in total. This is separate from the previously entered Diageo misleading-disclosure case and is duplicate-safe by title. Source / proof: U.S. Securities and Exchange Commission: https://www.sec.gov/newsroom/press-releases/2011-158-sec-charges-liquor-giant-diageo-fcpa-violations
Record details
- Category
- Corporate Misconduct
- When it happened
- 2003–June 2009
- Status
- Resolved (July 27, 2011)
- Severity
- high
- Added to Rotten Company
Source
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