The Anti-Corruption Report

The definitive source of actionable intelligence covering anti-corruption laws around the globe

Articles By Topic

By Topic: Anti-Kickback

  • From Vol. 5 No.21 (Oct. 26, 2016)

    Lynch’s Visit to Italy Highlights International Cooperation and Enforcement

    On October 20, 2016, U.S. Attorney General Loretta E. Lynch and Italian Minister of Justice Andrea Orlando hosted a meeting about international cooperation in the fight against organized crime and corruption. The meeting focused on the recent achievements and future developments of the collaboration between the U.S. and the Italian governments in the judicial field. In a guest article, Italian lawyers Roberto Cursano and Riccardo Ovidi, counsel and associate at Studio Professionale Associato at Baker & McKenzie discuss the key takeaways from the meeting, arguing that the meeting’s focus on collaboration confirms that companies should take into account the transnational dimension of anti-corruption enforcement when formulating their compliance programs. See “The Italian Organismo di Vigilanza, A Model for an Effective Compliance Committee” (Jun.15, 2016).

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  • From Vol. 5 No.10 (May 18, 2016)

    Resolutions in the Direct Access Partners Matter and the Panama Papers: A Caution for Financial Sector Anti-Corruption Compliance

    In May 2013, the DOJ unsealed criminal FCPA, Travel Act, money laundering and conspiracy charges against two employees of the New York broker-dealer Direct Access Partners, as well as Travel Act, money laundering and conspiracy charges against Maria de Los Angeles Gonzalez de Hernandez, vice president for finance of the Economic and Social Development Bank of Venezuela. In the three years since the original indictments, the case expanded, with additional indictments, amended SEC complaints, guilty pleas, sentencing and, in early April 2016, final judgments being entered in the SEC civil action. In a guest article, Sean Hecker and Andrew Levine, partners, and Philip Rohlik, counsel at Debevoise & Plimpton highlight the lessons companies can learn from the DAP case and other recent events. See “Why the Direct Access Partners Case Matters for Financial Sector Anti-Corruption Compliance” (Oct. 23, 2013).

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  • From Vol. 5 No.7 (Apr. 6, 2016)

    Travel Agency Abuse, Falsified Expense Reports and Other Hospitality Blunders Lead to $25 Million Novartis Settlement

    In the fourth similar settlement in the last six months, pharmaceutical giant Novartis has agreed to pay $25 million to settle SEC charges that it violated the books and records and internal controls provisions of the FCPA by bribing foreign officials. “The Novartis case is essentially the GSK case, with fewer zeroes and headlines,” Amy Sommers, a partner in K&L Gates’ Shanghai office, told The FCPA Report. Indeed, the scheme underlying Novartis’ troubles is familiar – employees and agents of the company’s Chinese subsidiaries provided travel, gifts and entertainment to health care providers to encourage sales of Novartis’ products. “The Novartis case appears to have arisen by virtue of inquiries made by the SEC in the wake of reporting about the GSK case in 2013,” Sommers explained. See also our coverage of the SciClone, PTC and Bristol Myers Squibb settlements.

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  • From Vol. 5 No.5 (Mar. 9, 2016)

    Failure to Heed a CCO Whistleblower’s Warnings Leads to Olympus’ $646 Million Anti-Kickback, FCA and FCPA Settlement

    The DOJ’s recent settlement with medical-device distributor Olympus demonstrates that corruption is not confined to emerging or high-risk markets. Rather, when a company fails to implement effective compliance measures, corruption can occur anywhere, even in the United States. From 2006 to 2011, Olympus Latin America (OLA) attempted to increase medical equipment sales in Central and South America by paying health care practitioners at government-run facilities more than $3 million. Simultaneously, in North America, Olympus employees were paying kickbacks to doctors and hospitals. The charges against Olympus resulted from a False Claims Act lawsuit filed by its former chief compliance officer who allegedly first-reported the claims internally – Olympus executives apparently failed to heed his warnings. See “Whistleblower Advocate and Experts at Gibson Dunn Discuss the Current State of the Dodd-Frank Whistleblower Program” (Jan. 13, 2016).

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  • From Vol. 1 No.9 (Oct. 3, 2012)

    LeClairRyan Webinar Highlights Ten Anti-Corruption Risks for Pharmaceutical and Medical Device Companies and Outlines the Elements of an Effective FCPA Compliance Program

    On September 19, 2012, Michael Volkov, a partner at LeClairRyan, hosted a webinar entitled “Anti-Corruption Risks for Pharmaceutical and Medical Device Companies.”  Volkov provided an overview of current trends in enforcement of the FCPA in the pharmaceutical and medical device industries and identified risk factors in FCPA compliance.  He also identified best practices associated with avoiding each risk factor and outlined the basic elements of a successful FCPA compliance program.

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  • From Vol. 1 No.2 (Jun. 20, 2012)

    Watts Water Technologies Sues Sidley Austin LLP for Malpractice Arising out of Alleged Failure to Reveal Chinese Target Company’s Written “Kickback” Policy

    In 2002, Watts Water Technologies, Inc. (Watts) retained global law firm Sidley Austin, LLP (Sidley) to advise it in connection with its operations in the People’s Republic of China (PRC).  From 2004 to 2005, Sidley conducted due diligence on a company Watts proposed to acquire in the PRC.  Sidley did not raise any red flags about FCPA compliance.  After the acquisition, Watts learned that the acquired company’s sales policies violated the FCPA.  Watts self-reported the problem to the DOJ and the SEC.  See “When and How Should Companies Self-Report FCPA Violations? (Part Two of Two),” above, in this issue of The FCPA Report.  It eventually consented to the entry of a cease-and-desist order by the SEC, whereby it disgorged $3.57 million in profit and paid a $200,000 fine.  Watts has now sued Sidley for malpractice, claiming that Sidley neglected to tell Watts of the target’s written “kickback” policy that Sidley had received during due diligence.  This article details the factual allegations and legal claims in Watts’ Complaint.

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