Anheuser-Busch to Pay $6 Million Neither Admit Nor Deny SEC FCPA Charges

Anheuser-Busch InBev will pay $6 million and neither admit nor deny charges that it violated the Foreign Corrupt Practices Act (FCPA) and chilled a whistleblower who reported the misconduct.

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Anheuser-Busch was represented by Steven Fagell of Covington & Burling in Washington, D.C.

A Securities and Exchange Commission (SEC) investigation found that the company used third-party sales promoters to make improper payments to government officials in India to increase the sales and production of Anheuser-Busch products in that country.

Despite repeated complaints from employees, Anheuser-Busch had inadequate internal accounting controls to detect and prevent the improper payments, and the company failed to ensure that transactions involving the promoters were recorded properly in its books and records.

The SEC’s order finds that Anheuser-Busch entered into a separation agreement that stopped an employee from continuing to voluntarily communicate with the SEC about potential FCPA violations due to a substantial financial penalty that would be imposed for violating strict non-disclosure terms.

”Anheuser-Busch recorded improper payments by its sales promoters in India as legitimate expenses in its financial accounting, and then exacerbated the problem by including language in a separation agreement that chilled an employee from communicating with the SEC,” said Kara Brockmeyer, Chief of the SEC Enforcement Division’s FCPA Unit.

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