Articles Tagged with Foreign Bribery

briberyFCPA is Being Encouraged to Fight Foreign Bribery

The US Justice Department is apparently bulking up its anti-foreign bribery program.  According to HETQ, the US plans to expand benefits for companies who report on any acts of foreign bribery their employees may have committed.  Deputy Attorney General Rod Rosenstein announced the new policy at the 34th International Conference on the FCPA in Maryland.


According to the Wall Street Journal, emails and other documents reviewed by the paper’s reporters reveal information uncovered by a tipster alleging that Glaxo’s China sales staff provided doctors with speaking fees, cash payments, lavish dinners and all expenses paid trips in return for prescribing the drug company’s products. Glaxo says it is looking into the matter. Like in the U.S., patients in China need a doctor’s prescription to buy regulated drugs and drug sales persons meet frequently with doctors to try to get them to prescribe products. However, unlike the U.S., the government controls all of China’s health care system so any purchased are through government paid physicians. Under the U.S. Foreign Corrupt Practices Act it is illegal for companies with significant U.S. operations to bribe foreign officials or their agents in exchange for business. Whistleblower tipsters are now coming forward to be part of the Securities and Exchange Commission’s new whistleblower program allowing the tipsters a reward of up to 30% of the moneys recovered. The Glaxo whistleblower says that between 2004 through 2010 Glaxo regularly gave cash to its sales staff in China and some of that went directly to doctors at Chinese hospitals in return for prescribing drugs from the company. Recently Glaxo settled a case with the U.S. Department of Justice relating to its drug marketing practices. Under the new SEC program, whistleblowers may come forward anonymously through counsel, thereby protecting themselves. Jeffrey Newman represents whistleblowers.

Global drug manufacturers are shelling out millions of dollars to settle allegations that they are bribing their way into emerging markets a practice that is in violation of the Foreign Corrupt Practices Act (FCPA) . Harsher penalties are being implemented to deter the practices says the Department Of Justice. Eight of the top 10 drug makers including Bristol-Myers Squibb, Pfizer and Johnson & Johnson have disclosed U.S. probes under the 1977 FCPA. Pfizer agreed to pay $60 million this year to settle FCPA charges and J&J paid $70 million last year.  Latin American business practices encourage bribes and the pharmaceutical makers are intensely interested in entering these markets as well as those in China and other developing nations. The largest FCPA penalty was $800 million paid by Germany based Siemens in 2008.

Jeffrey Newman represents whistleblowers.