The Drinks Business wrote:Miami-based wholesaler Southern Glazer’s Wine and Spirits (SGWS) has been fined a record US$3.5 million by New York’s State Liquor Authority (SLA) for engaging in “pay to play” schemes to win business, with the violations uncovered described as “truly staggering” by one official.
Imposing a fine of $3.5m – the largest penalty ever imposed by the SLA – the agency said it had found the wholesaler guilty of providing “illegal gifts and services to business to influence their purchasing decisions, for permitting incomplete, inaccurate, and inadequate record keeping practices, and for engaging in discriminatory sales.”
Specifically, investigators found that representatives of SGWS would routinely provide illegal gifts, either in the form of cash or goods, at favoured restaurants and retail establishments, running up large expenses on their corporate credit cards – an illegal practice commonly known as “credit card swipes.”
The company was also found in breach of New York State’s Alcoholic Beverage Control (ABC) law for giving certain retailers preferential discounts on stock over others.
“The multitude of violations found during the course of these investigations is truly staggering,” said State Liquor Authority chairman Vincent G. Bradley.
“The SLA remains committed to rooting out abuse and corruption in the alcoholic beverage control industry to ensure a level playing field for all businesses. I am incredibly proud of the work of our enforcement and legal teams, who work hard every day to protect small businesses and consumers.”
Full story here:
https://www.thedrinksbusiness.com/2017/ ... ay-scheme/