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U.S. v. AGA Medical Corporation

 
:
AGA Medical Corporation
:
DOJ Criminal
:
June 2, 2008
:
U.S. v. AGA Medical Corporation
:
U.S. v. AGA Medical Corporation, No. 0:08-cr-00172-1 (D. Minn. 2008)
:
Healthcare-Medical Devices
:
China
:
1997; 1998; 1999; 2000; 2001; 2002; 2003; 2004; 2005
:
Bribes to officials in the state People's Republic of China State Intellectual Property Office; Chinese government doctors
:
AGA Medical Corporation ("AGA"), incorporated and headquartered in Minnesota, specializes in the manufacture of products designed for the minimally invasive treatment of congenital heart defects.

Between 1997 and 2005, AGA, a high-ranking officer and part-owner of AGA and two heads of international sales at AGA agreed to make corrupt payments to doctors in China who were employed by government-owned hospitals. The payments were made via AGA's local Chinese distributor in the form of kickbacks to physicians. In exchange for these payments, the Chinese doctors directed the government-owned hospitals to purchase AGA's products. The distributor paid at least $460,000 in such "commissions."

From 2000 through 2002, AGA also sought patents on several AGA products from the People's Republic of China State Intellectual Property Office. The local Chinese distributor also made payments, totaling at least $20,000, to officials in that office to have the patents approved.
:
Anti-bribery (Domestic Concern)
:
Compliance Monitor, Deferred-prosecution Agreement, Fine
:
AGA Medical entered into a three-year deferred prosecution agreement with the DOJ and agreed to pay $2 million fine and retain a monitor for three years.
:
2,000,000
:
0
:
Domestic Concern
:
U.S.
:
Contract Procurement/Retention, License/Permit
:
13,500,000
:
Cash, Wire/check
:
Customs Broker or Agent/Consultant
:
Not stated.
:
China, United States
:
United States
:
"Foreign Official": Chinese government doctors were considered "foreign officials" in this case.
:
No