From our private database of 37,500+ case briefs...
In the Matter of Diageo plc
United States Securities and Exchange Commission
Exchange Act Release No. 64978, AAER Release No. 3307 (2011)
Facts
The Securities and Exchange Commission (SEC) (plaintiff) ordered a cease and desist against Diageo plc (Diageo) (defendant), a beverage maker and distributor. The SEC alleged that Diageo committed multiple violations of the Foreign Corrupt Practices Act (FCPA). For example, from 2002 to 2006, Diageo’s subsidiary, Diageo Korea Co. Ltd. (DK), spent over $220,000 on gifts for South Korean military officers. DK spent over $64,000 on about 400 “rice cake” payments, which were $100 to $300 cash or gift certificate payments for holidays and vacations. DK spent over $165,000 on hundreds of nontraditional and nonseasonal gifts referred to as Mokjuksaupbi payments, or payments for entertainment made to influence customer relationships. Instead of accurately reporting the gifts, DK either used fake vendor invoices or incorrectly recorded these gift payments under its general ledger accounts for expenses. Diageo expanded rapidly, acquiring several international subsidiaries and did not make sufficient efforts to improve its subsidiaries’ compliance with securities regulations until 2008, when it discovered DK’s illicit payments.
Rule of Law
Issue
Holding and Reasoning
What to do next…
Here's why 631,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 37,500 briefs, keyed to 984 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.