In the Matter of Diageo plc

Exchange Act Release No. 64978, AAER Release No. 3307 (2011)

From our private database of 46,500+ case briefs, written and edited by humans—never with AI.

In the Matter of Diageo plc

United States Securities and Exchange Commission
Exchange Act Release No. 64978, AAER Release No. 3307 (2011)

  • Written by Arlyn Katen, JD

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…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 832,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 832,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,500 briefs, keyed to 994 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 832,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,500 briefs - keyed to 994 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership