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U.S. v. Syncor Taiwan, Inc.

 
:
Syncor - Syncor Taiwan, Inc.
:
DOJ Criminal
:
December 5, 2002
:
U.S. v. Syncor Taiwan, Inc.
:
U.S. v. Syncor Taiwan, Inc., No. CR 02-1244-SVW (C.D. Ca., 2002)
:
1. In this M&A matter, the discovery of the improper payments caused the acquirer to delay the closing repeatedly until the matter was settled with the authorities. Further, the purchase price was negotiated downward, and the principial shareholder was required to create an escrow account to reimburse the acquirer for any penalities associated with the matter.

2. This is an early example of criminal charges being brought against the subsidiary involved in the conduct with parallel SEC civil proceedings against the issuer parent corporation, alleging additional violations in other geographical locations or additional transactions.

3. Several years later the SEC settled the civil action against Monty Fu, Syncor's then-Chairman.

4. This was the first case to charge that doctors were government officers.
:
Healthcare-Hospitals
:
Taiwan
:
1997; 1998; 1999; 2000; 2001; 2002
:
Government hospital doctors in Taiwan
:
Anti-bribery (Other Persons)
:
Fine, Plea
:
This sanction consisted of a criminal fine of $2 million.
:
2,000,000
:
0
:
Syncor Taiwan's plea was entered under a provision of the rules in which the court may either accept the stipulated fine or reject the plea agreement altogether. The public record does not include any specific Sentencing Guidelines calculations in support of the $2,000,000 fine, other than to note $2M is the maximum statutory fine (although it may be increased under the Alternative Fines Act). It is likely that this amount was justified under the Guidelines by assessing an offense level of 22 based on improper payments of $457,117, and applying a culpability score of 2, reflecting the involvement of senior personnel in an entity with 50 or more employees and voluntary disclosure and cooperation.
:
Foreign
:
Contract Procurement/Retention
:
Not stated.
:
Cash
:
Direct
:
457,117
:
Taiwan
:
Taiwan
:
An act within the territory of the United States includes faxing body counts to the U.S. where they were approved by an individual who was Chairman of both the U.S. parent and the foreign subsidiary.
:
Yes
:
No