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ARTICLE · 16 JULY 2018

SEC Settles Enforcement Action Against Beam Suntory for Improper Payments by Its Foreign Subsidiary

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On July 2, 2018, the Securities and Exchange Commission (Commission or SEC) settled an enforcement action against Beam Suntory Inc. (Beam), a worldwide beverage maker and distributor, over alleged violations of the Foreign Corrupt Practices Act (FCPA) related to improper payments by its Indian subsidiary, Beam Global Spirits & Wine (India) Private Limited (Beam India).

United StatesCriminal Law
Kimberley Parker
Kimberley Parker
Jay Holtmeier
Jay Holtmeier
Erin Sloane
Erin Sloane
Lillian Howard Potter
Lillian Howard Potter
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On July 2, 2018, the Securities and Exchange Commission (Commission or SEC) settled an enforcement action against Beam Suntory Inc. (Beam), a worldwide beverage maker and distributor, over alleged violations of the Foreign Corrupt Practices Act (FCPA) related to improper payments by its Indian subsidiary, Beam Global Spirits & Wine (India) Private Limited (Beam India).1 Beam was required to disgorge over $5 million in profits and pay a $2 million civil penalty, for total sanctions of more than $8 million.

Beam is alleged to have made both direct and indirect improper payments to Indian government officials in connection with inspections, distribution, licenses and registrations, and to secure advantageous product placement and promotion of its products in government and retail stores. Indian management maintained a second set of financial records to track these payments and recorded the payments with descriptions intended to disguise the true nature of the payments

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