Anheuser-Busch InBev SA/NV ("AB InBev"), a Belgian brewer with a global presence, was formed in November 2008 when the American company, Anheuser-Busch Companies Inc. merged with Belgian company, InBev SA/NV. AB InBev’s shares traded on the New York Stock Exchange and were registered with the SEC. After the merger, AB InBev conducted its Indian operations through wholly-owned subsidiary Crown Beers India Private Limited (“Crown”). From 2009 to 2012, AB InBev owned 49% of an Indian joint venture, InBev India International Private Limited (“IIIPL”), which marketed and distributed Crown beer.
According to the cease and desist order, in which AB InBev neither admitted nor denied the findings, IIIPL used third-party intermediaries to make improper payments to Indian governmental officials in order to increase beer sales and to extend brewery operating hours. These payments were then invoiced to Crown and improperly recorded in Crown’s records as legitimate promotional expenses and accruals, which were then consolidated into AB InBev’s books and records.
On more than one occasion, a Crown employee made internal complaints to AB InBev about the improper payments. Crown terminated the employee in 2012. Prior to his termination, the employee had been communicating with the SEC but stopped abruptly when he was fired because his separation agreement prohibited communications with government enforcement authorities.
On September 28, 2016, the SEC filed a settled administrative proceeding ordering AB InBev to cease and desist violations of the books & records and internal controls provisions of the FCPA as well as the Dodd-Frank whistleblower provisions. AB InBev was also ordered to pay disgorgement of $2,712,955, prejudgment interest of $292,381, and a civil penalty of $3,002,955, for a total payment of $6,008,291. Finally, the SEC ordered AB InBev to report to the SEC on the status and implementation of its enhances anti-corruption compliance polices and procedures for a term of 2 years.
The SEC noted AB InBev’s remediation and cooperation, but took into account AB InBev's untimely responses to certain subpoenas and what the SEC deemed to be overly broad assertions of privilege.
