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United States v. DPC (Tianjin) Co. Ltd.

 
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DPC - DPC (Tianjin) Co. Ltd.
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DOJ Criminal
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May 20, 2005
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United States v. DPC (Tianjin) Co. Ltd.
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U.S. v. DPC (Tianjin) Co. Ltd., No. 2:05-cr-00482 (C.D. Cal. 2005)
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Although there was no disclosed pending M&A transaction, the agreement anticipated the possibility of a future M&A transaction. In contrast to earlier agreements, which provided that the monitor would continue despite a subsequent acquisition, this agreement provided for the termination of the monitor if the U.S. authorities concluded that the acquirer's compliance program was effective and the monitor reports that DPC was appropriately integrated in the acquirer's program.

It is also noteworthy that DPC was required to disclose the conduct to the authorities in China and report back to the U.S. authorities to the extent of that disclosure.
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Healthcare-Hospitals
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China
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1991; 1992; 1993; 1994; 1995; 1996; 1997; 1998; 1999; 2000; 2001; 2002
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Chinese government officials working for Chinese government hospitals
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DPC Co. Ltd., formerly Tianjin Depu Biotechnological and Medical Products Inc. ("Tianjin"), a Chinese subsidiary of Diagnostics Products Corporation ("DPC"), a U.S. corporation, is a worldwide provider of immunodiagnostic systems and reagents. From 1991 through 2002, DPC, through senior employees of Tianjin, routinely made improper commission payments totaling approximately $1.6 million to the employees who controlled purchasing decisions in Chinese state-owned hospitals. These payments were made in exchange for agreements that Chinese hospitals would retain Tianjin's products and services. When Tianjin's auditors raised certain Chinese tax issues related to the commission payments and the tax issues were reported to current DPC management, DPC instructed Tianjin to stop all commission payments.
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Anti-bribery (Issuer)
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Fine, Plea
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This sanction consisted of: Criminal fine of $2,000,000 and a specific assessment of $400.00.
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2,000,400
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0
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Agent of Issuer
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Foreign
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Contract Procurement/Retention
:
Not stated.
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Cash, Wire/check
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Direct
:
1,623,326
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China
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China
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"Agent": The foreign subsidiary here charged as agent of a U.S. issuer.
:
No
:
No