New and expanding allegations of corporate bribes in China have the Securities and Exchange Commission staff busy investigating possible violations of the Foreign Corrupt Practices Act and other laws and much of the information is coming from insider whistleblowers.
Chinese authorities announced an investigation of French drug manufacturer Sanofi SA over a whistleblower report accusing the company of bribing over 503 physicians in 79 hospitals in Beijing.Shanhai, Hangdou and a sales rep from Novartis named Li Li says she was asked to bribe doctors to meet her sales quota. Danish Drug makers Novo Nordisk and Lundbeck are also being visited by Chinese regulators.
Federal authorities have opened a bribery investigation into whether JPMorgan Chase hired the children of powerful Chinese officials to help the bank win lucrative business deals. This information too was apparently revealed by a whistleblower.
Under the Dodd Frank Act and the Foreign Corrupt Practices Act, companies traded on a U.S. stock exchange, found to have given bribes to foreign officials or their agents fall within the jurisdication of the Securities and Exchhange Commission(SEC)
Under the SEC whistleblower program a source revealing primary and detailed information about such bribes may be entitled to up to 30% of the government’s recovery from sanctions and penalties from the companies.
China is now a hotspot for whistleblowers revealing bribes of Chinese officials, their agents and families.