Chicago Company Fined $19.6 Million After FCPA Violations
A Chicago beverage company agreed to pay more than $19.6 million after it violated the Foreign Corrupt Practices Act, the Justice Department said Oct. 27. Beam Suntory Inc. allegedly tried to bribe an Indian government official to gain approval for a license “to bottle a line of products” that the company wanted to sell in India, Justice said. The company also violated records and book-keeping laws by ignoring “improper activities and practices” by third-parties engaged by Beam in India that led to corruption risks.
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Beam worked with others to bribe a senior Indian government official 1 million Indian rupees -- or about $18,000 -- to license the company’s “Ready-to-Drink” products in India, Justice said. A “high-ranking” executive at the company’s Asia Pacific/South America unit approved the bribe, which was made through a “third-party bottler.” Beam also bribed other Indian government officials to obtain business in the Indian market, making the payments through third-party sales promoters and distributors, Justice said.
The company also failed to “implement and maintain an adequate system of internal accounting controls,” which would have helped stop the bribes. Justice said that outside advisers warned Beam “on numerous occasions” about the need for better internal controls and that the company falsely recorded expenses and labeled bribes “commission expenses.”
Beam agreed to a three-year deferred prosecution agreement. As part of the agreement, the company will cooperate with the U.S. in its investigation and agreed to improve its compliance program, Justice said.