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Regulatory Sanctions

This Bud's For You - SEC Says Anheuser-Busch Violated FCPA, Whistleblower Protection Laws

September 28, 2016

Anheuser-Busch InBev agreed to pay $6 million in fines, disgorgement and interest to settle SEC charges that it violated the Foreign Corrupt Practices Act (FCPA) and chilled a whistleblower who reported the misconduct.  The company is alleged to have used 3rd-party sales promoters to bribe government officials in India and recorded those payments as legitimate expenses in its financial accounting. 

 

Anheuser-Busch exacerbated the problem by including language in an employment separation agreement that chilled the employee from communicating with the SEC - threatening to impose substantial financial penalties for violating strict non-disclosure terms.