Four vendors to the Pennsylvania Liquor Control Board have entered non-prosecution agreements with the government requiring the payment of over $9 million in monetary penalties for their involvement in previously providing things of value to officials at the PLCB.
Southern Glazer’s agreed to pay $5 million in monetary penalties for their employees’ role in providing cash, all-expenses paid trips, tickets to shows and sporting events, entertainment and other things of value to officials at the PA-LCB from 2000 to 2012. Attached to their agreement is a statement of facts outlining the conduct of Southern’s employees.
White Rock Distilleries agreed to pay $2 million in monetary penalties for their employees’ role in providing cash, all-expenses paid trips, and other things of value to officials at the PA-LCB from 2000-2011. Attached to their agreement is a statement of facts outlining the conduct of White Rock’s employees.
Breakthru Beverage Pennsylvania, which until recently operated as Capital Wine & Spirits, LLC, agreed to pay $2 million in monetary penalties for their employees’ role in providing gift cards, tickets, meals, and entertainment to officials at the PA-LCB between 2007-2012. Attached to their agreement is a statement of facts outlining the conduct of Capital’s employees.
Pio Imports, LLC, agreed to pay $200,000 in monetary penalties for their employee’s role in providing gift cards to officials at the PA-LCB between 2007-2012. Attached to their agreement is a statement of facts outlining the conduct of Pio’s employees.
Each of these companies agreed to pay substantial monetary penalties, implement compliance measures and refrain from engaging in similar activities in the future. The government agreed not to prosecute the companies nor any of their employees who gave things of value to officials of the PLCB.
U.S. Attorney Bruce D. Brandler noted several factors that informed these resolutions, including the cooperation of the businesses in the government’s investigation, the merits of the individual cases, as well as the historic nature of the conduct which was discontinued in 2012 when the Pennsylvania Ethics Commission initiated its investigation into this matter.
In a statement, the PLCB said it “has been fully cooperative with the U.S. Attorney’s investigations over the last two years, and these companies’ admissions of unethical behavior occurring from 2000 to 2012 are a matter the PLCB is taking very seriously.
The Board has called senior leadership of each the three companies still supplying wines and spirits to Pennsylvania into PLCB headquarters in the immediate future to discuss the settlements and determine how the agency and these suppliers can move forward preserving the highest ethical standards.
“Following investigations into former PLCB employees who violated state ethics standards, in 2014 the PLCB clarified and reissued its employee code of conduct and developed a new and separate code of conduct for wine and spirits vendors.
“The Board is disappointed at the action of all parties involved, who violated the trust of the agency and Pennsylvanians.”