In the Matter of Cadbury Limited & Mondelēz International, Inc. (2017)

• Case Name
• In the Matter of Cadbury Limited & Mondelēz International, Inc. (2017)

• Date Filed
• 01/06/2017

• Enforcement Agency
• SEC

• Countries
• India

• Foreign Official
• Indian government officials.

• Date of Conduct
• 2010

• Nature of Business
• Mondelez, formerly known as Kraft Foods Inc., is a Virginia company with its principal headquarters in Deerfield, Illinois.  In 2010, Mondelez was known as Kraft Foods Inc.  Kraft was a global manufacturer of food, beverage, and snack products.  Kraft maintained a common stock on the New York Stock Exchange that was registered with the Commission.  Mondelez acquired the U.K.-incorporated and based Cadbury Limited in February 2010.  Prior to the acquisition, Cadbury had a class of ADRs registered with the Commission and traded on the New York Stock Exchange. 

• Influence to be Obtained
• According to the SEC, in early 2010, Cadbury India Limited, a Cadbury subsidiary, retained an agent to interact with Indian government officials to obtain licenses and approvals for a chocolate factory in Baddi, Himachal Pradesh, India.  The SEC claims that Cadbury India failed to conduct appropriate due diligence and monitor the agent to ensure that funds paid to the agent were not used for improper or unauthorized purposes.  In addition, Cadbury is accused of failing to accurately and fairly record the nature of the services rendered by the agent into its books and records.

• Enforcement
• On January 6, 2017, the SEC announced that it had resolved an FCPA enforcement action against Mondelēz for violations of the FCPA’s books-and-records and internal controls provisions.  According to the Commission’s cease-and-desist order, Mondelēz was required to pay a civil penalty of $13 million.

• Amount of the Value
• Not stated.

• Amount of Business Related to Payment
• Not Stated.

• Intermediary
• Agent.

• Citizenship of Parent Entity
• United States

• Total Sanction
• $ 13,000,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 13,000,000

Cadbury Limited 

• Citation
• In the Matter of Cadbury Limited and Mondelez International, Inc., Admin. Pro. File No. 3-17759 (2017).

• Date Filed
• 01/06/2017

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States

Mondelez International, Inc. 

• Citation
• In the Matter of Cadbury Limited and Mondelez International, Inc., Admin. Pro. File No. 3-17759 (2017).

• Date Filed
• 01/06/2017

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United States