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U.S. v. Novo Nordisk A/S

 
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Novo Nordisk - Novo Nordisk A/S
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DOJ Criminal
:
May 11, 2009
:
U.S. v. Novo Nordisk A/S
:
U.S. v. Novo Nordisk A/S, No. 09-12C (RJL) (D. D.C. 2009)
:
Healthcare-Pharmaceutical
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Iraq
:
2001; 2002; 2003
:
Representatives of Iraqi State Company for Drugs and Medical Appliances (Kimadia).
:
In April 1995, the U.N. adopted Security Council Resolution 986, which permitted the government of Iraq to sell oil and to use proceeds from those sales to purchase humanitarian supplies such as food for the Iraqi people ("U.N. Oil-for-Food Program:). In an extensive scheme, the Iraqi government received illicit payments in the form of surcharges from oil purchasers and kickbacks, often termed "after sales service fees," from humanitarian goods suppliers. The kickback payments were masked by inflating the contract price, usually by 10% of the contract value. Novo Nordisk paid illegal kickbacks to the former government of Iraq to secure contracts to provide insulin and other medical supplies to Iraq under the U.N. Oil-for-Food Program. Novo Nordisk agents and employees in Greece and Jordan handled the sales to Iraq. Novo Nordisk inflated the price of contracts by 10% before submitting them to the United Nations for approval and then used the extra funds to make illegal payments to the Iraqi Ministry of Health through a Jordanian intermediary. Novo Nordisk inaccurately recorded the payments as "commissions" in its books and records.

The value of business to be obtained was 22,000,000 euros (approx. $22 million). The government did not allege bribery of any individual foreign governmental officials.

Federal prosecutors filed a criminal information against Novo Nordisk on May 11, 2009 charging conspiracy to commit wire fraud and violate the books and records provisions of the FCPA. Pursuant to a deferred prosecution agreement, the DOJ agreed to drop the charges after three years in exchange for Novo Nordisk consenting to: pay a $9 million fine; cooperate with further investigation; and implement a specified compliance program, including internal accounting controls and an anticorruption compliance code.
:
Books and records (Issuer), Conspiracy - Books & Records
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Conspiracy - Wire Fraud
:
Deferred-prosecution Agreement
:
9,000,000
:
0
:
Issuer
:
Foreign
:
Contract Procurement/Retention
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22,000,000
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Wire/check
:
Sales Agent/Consultant
:
1,400,000
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Greece, Jordan
:
Jordan
:
No
:
No