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SEC v. Gioacchino De Chirico

 
:
Immucor - De Chirico, Gioacchino
:
SEC Civil
:
September 27, 2007
:
SEC v. Gioacchino De Chirico
:
SEC v. Gioacchino De Chirico, No. 1:07-cv-2367 (N.D. Ga. 2007)
:
Healthcare-Medical Devices
:
Italy
:
2003; 2004
:
The director of a public hospital in Milan, Italy
:
Gioacchino De Chirico settled this action with the SEC without admitting or denying the following facts alleged in the SEC's complaint:

Immucor, Inc., a U.S. corporation ("Immucor"), is a medical equipment company specializing in the manufacture and marketing of products used in the pre-transfusion diagnostics of human blood. Immucor conducts business internationally through wholly-owned subsidiaries, including Immucor Italia, S.p.A., based in Italy ("Immucor Italia").

De Chirico, an Italian citizen and legal resident of Georgia, was the President and Chief Operating Officer of Immucor. As of September 2009, he continued to serve as Immucor's President and Chief Executive Officer.
According to the SEC, in January 2002, Immucor Italia sold blood testing units to Niguarda Hospital, a public hospital in Milan, Italy. In 2003, De Chirico, allegedly arranged for the director of Niguarda Hospital to chair a medical conference in Italy on the topic of an Immucor product. At that time, De Chirico allegedly agreed to compensate the hospital director for his role at the conference in a method that would enable the hospital director to avoid paying income tax.

According to the SEC, in February 2004, Immucor Italia, acting through a sales agent offered the hospital director a payment of 13,500 euros (approximately $16,119) to influence his decision to award Immucor a contract. De Chirico allegedly approved payment pursuant to an invoice received from the sales agent in Italy, requesting 13,500 Euros for compensation for the hospital director's participation in the 2003 conference and requesting payment to a Swiss bank account.

Allegedly, under De Chirico's authorization, Immucor's German subsidiary made the payment to the Swiss account, recording the amount as a payment for consulting services in Switzerland that were never rendered. Thus, the payment to the hospital director was inaccurately booked as a consulting service paid pursuant to a false invoice.

De Chirico and Immucor consented to the SEC issuing a cease-and-desist order against De Chirico and Immucor on September 27, 2007, enjoining both parties from committing any further violations of the books and records and internal controls provisions of the Securities Exchange Act of 1934. Without admitting or denying any of the SEC's allegations, De Chirico consented to the district court of the Northern District of Georgia entering final judgment against him for a civil penalty of $30,000.
:
Aiding and abetting books and records, Aiding and abetting internal controls, Books and records (Individual), Internal Controls (Individual)
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Civil penalty, Civil Settlement, Injunction/Cease and desist
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Civil penalty
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30,000
:
0
:
Officer of Issuer
:
COO, President
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Wire/check
:
Sales Agent/Consultant, Subsidiary Company
:
16,119
:
Switzerland
:
Switzerland
:
No
:
Italy