Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-17759
Name of Prosecuting Attorneys:
Unknown
US Assisting Agencies: Unknown
Foreign Enforcement Action/Investigation: Unknown
Foreign Assisting Agencies: Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
Cadbury Limited, a company incorporated and headquartered in England, was a major manufacturer and distributor of candy and snack beverages. Prior to being acquired by Mondelez International, Inc. on February 2, 2010, Cadbury’s shares were registered with the SEC and traded on the New York Stock Exchange.
Mondelez International, Inc., a company incorporated and headquartered in the United States, which prior to October 2012 was known as Kraft Foods Inc., was a global manufacturer and marketer of food, beverage and snack products. In addition to renaming itself in October 2012, Kraft spun off its North American grocery business into a new company called Kraft Foods Group, Inc., and Mondelez retained the global snacking business. Mondelez common stock was registered with the SEC and traded on the NASDAQ.
Cadbury India Limited was Cadbury's Indian subsidiary, and it was renamed Mondelez India Foods Private Limited when Mondelez acquired Cadbury. It operated six manufacturing plants and four sales offices in India.
As part of an effort to obtain licenses and approvals in connection with the expansion of a chocolate factory in Baddi, Himachal Pradesh, India in early 2010, Cadbury India hired an agent to interact with Indian government officials in charge of the licenses and approval process. Cadbury India failed to conduct appropriate due diligence on the agent or to monitor the agent's activities, and these failures created the risk that funds paid to the agent could be used for improper purposes.
In an administrative proceeding on January 6, 2017, the SEC issued a settled cease-and-desist order against Cadbury and Mondelez. Under the terms of the proceedings, the SEC ordered both companies to cease and desist violations of the books & records and internal controls provisions of the FCPA. The SEC further ordered Mondelez to pay a civil penalty of $13 million. The SEC noted Mondelez's internal investigation into the matter as well as its remediation and cooperation with the SEC in its investigation. No compliance obligation was imposed.
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