Jump to content Jump to menu
Why Register?

Shearman FCPA Website: Cases Logo Shearman & Sterling LLP FCPA.Shearman.com: The One-Stop Resource on the Foreign Corrupt Practices Act

S.E.C. v. Syncor International Corporation

 
:
Syncor - Syncor International Corporation
:
SEC Civil
:
December 10, 2002
:
S.E.C. v. Syncor International Corporation
:
SEC v. Syncor International, Case No. 1:02CV02421 (D.D.C., 2002).
:
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. This is an early example of SEC civil proceedings being brought against the issuer parent corporation and with parallel criminal charges being brought against the subsidiary involved in the conduct, often alleging additional violations in other geographical locations or additional transactions.This is the first case to charge bribery of foreign government doctors as public officials, reflecting a broad interpretation of government "instrumentality."
:
Healthcare-Biotech
:
Belgium, France, Luxembourg, Mexico, Taiwan
:
1987; 1988; 1989; 1990; 1991; 1992; 1993; 1994; 1995; 1996; 1997; 1998; 1999; 2000; 2001; 2002
:
Government hospital administrators and doctors from Belgium, Luxembourg, France, Mexico, and Taiwan.
:
The details of the bribery scheme are set forth in the fact description for Syncor - Syncor Taiwan, Inc.From at least the mid-1980s through at least September 2002, Syncor's foreign subsidiaries in Taiwan, Mexico, Belgium, Luxembourg, and France made at least $600,000 in illicit payments to doctors employed by hospitals controlled by foreign authorities. According to the Commission, these illicit payments were made with the purpose and effect of influencing the doctors' decisions so that Syncor could obtain or retain business with them and the hospitals that employed them. The Commission charged that the payments were made with the knowledge and approval of senior officers of the relevant Syncor subsidiaries, and in some cases with the knowledge and approval of Syncor's founder and chairman of the board.
:
Anti-bribery (Issuer), Books and records (Issuer), Internal controls (Issuer)
:
Civil penalty
:
This sanction consisted of a $500,000 civil penalty.
:
500,000
:
0
:
Issuer
:
U.S.
:
Contract Procurement/Retention
:
Not stated.
:
Cash, Entertainment, Gifts, Travel
:
Direct
:
600,000
:
Luxembourg, Mexico, Taiwan
:
Yes
:
No