Stay current on changes and developments in corporate law with a wide variety of resources and tools.
By Che Odom
Feb. 22 — Mondelez International Inc., maker of Oreos, Wheat Thins and Toblerone, said the Securities and Exchange Commission served it with a “Wells” notice in connection with the alleged bribery of Indian government officials.
The Wells notice, issued Feb. 11, indicates that SEC officials have made a preliminary determination to recommend that enforcement action be taken against the Deerfield, Ill.-based company for violations of books and records and internal control rules, according to a Form 10-K Mondelez filed on Feb. 19.
The SEC investigation arises out of bribes allegedly paid by Cadbury, which is owned by Mondelez, to Indian officials to win certain approvals and permits .
Kraft Foods Inc. changed its name to Mondelez in 2012 after spinning off its North American grocery operations and after buying U.K.-based Cadbury plc.
Mondelez said it intends to submit a response to the SEC staff, arguing why charges shouldn't be brought against it.
In the filing, Mondelez said that during a 2010 compliance review following its purchase of Cadbury, it found that Cadbury’s overall state of compliance was sound, but “determined that in certain jurisdictions, including India, there appeared to be facts and circumstances warranting further investigation.”
In a prior February 2011 filing, Mondelez disclosed that it received a subpoena from the SEC in connection with a Foreign Corrupt Practices Act investigation. The subpoena requested information regarding dealings with Indian agencies and officials to obtain approvals related to the operation of a Cadbury plant.
Mondelez also said Feb. 19 that it is appealing an order by the Commissioner of the Indian Central Excise Authority that denied the company's exemption request for its India facility and ordered it to pay approximately $88 million in back taxes and penalties.
“We believe that the decision to claim the excise tax benefit is valid and we are continuing to contest the show cause notices through the administrative and judicial process,” Mondelez said.
Attempts to reach Mondelez for comment weren't immediately successful.
To contact the reporter on this story: Che Odom in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Yin Wilczek at email@example.com
Mondelez's Feb. 19 Form 10-K is available at https://www.sec.gov/Archives/edgar/data/1103982/000119312516469394/d51394d10k.htm.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)