SEC settles with Beam Suntory for $8.2 million regarding India payments

SEC FCPA

On July 2, the SEC settled FCPA allegations with alcoholic beverage company Beam Suntory, Inc. (“Beam”) in an administrative proceeding stemming from alleged FCPA violations from 2006 through 2012. Beam neither admitted nor denied any wrongdoing. The SEC alleged that the company’s subsidiary in India made illegal payments to Indian government officials through third-party sales promoters and distributers. The third parties then presented fabricated or inflated invoices to the subsidiary. These invoices and accounting entries were ultimately incorporated into the parent company’s books and records. The SEC also alleged that Beam failed to maintain adequate internal controls.

This is the third case the SEC has pursued related to conduct in India by alcoholic beverage companies, following Diageo in 2011 and AB InBev in 2016.