Glaxo probing hiring docs in Iraq as paid sales reps may result in DOJ investigation

GlaxoSmithKline, one of the largest pharma companies in the world, is investigating whistleblower allegations that its Irag subsidiary may have hired government employed doctors and pharmacists in the country, as paid sales reps to boost profits from sales.

If found to be true, this could mean that the company violated the Foreign Corrupt Practices Act (FCPA) which makes payments to government officials or employees by American traded businesses illegal. This could lead to an investigation by the United States Department of Justice. (DOJ).

According to the Telepgraph Media Group, ¬†Glaxo received the allegations from a whistleblower familiar with GSK’s Middle East operation. He accused the company of hiring 16 government employed doctors and pharmaceists as sales representatives for the company.

A few months ago, allegations surfaced in China that the sales staff had paid over $350 million in bribes to win market share in that country.

More information is expected to surface about the Iraq allegations within the next few weeks.

Jeff Newman represents whistleblowers.