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U.S. v. Jerds Luxembourg Holding S.ÀR.L.

 
:
Jerds Luxembourg Holding S.ÀR.L.
:
DOJ Criminal
:
January 12, 2017
:
U.S. v. Jerds Luxembourg Holding S.ÀR.L.
:
U.S. v. Jerds Luxembourg Holding S.ÀR.L., No. 1:17-cr-00007 (D.D.C. 2017)
:
Healthcare-Medical Devices
:
Mexico
:
2010; 2011; 2012; 2013
:
Unnamed Mexican customs officials.
:
Biomet, Inc. is a medical device company headquartered in Warsaw, Indiana that sells medical devices and dental products. Prior to 2008, Biomet’s stock was registered with the Commission. In March 2012, Biomet entered into a deferred prosecution agreement with the DOJ for FCPA violations in Brazil, China, and Argentina. In June 2015, Biomet was acquired by Zimmer Holdings, Inc. and was renamed Zimmer Biomet. Jerds Luxembourg Holding S.ÀR.L. is a Luxembourg subsidiary of Biomet which, in turn, owns several of Biomet’s subsidiaries, including its Mexican subsidiaries.

According to the DOJ, between 2010 and 2013, Biomet’s Mexican subsidiary used a customs broker whose subagents bribed Mexican customs officials to smuggle unregistered and improperly labeled dental products into Mexico. The DOJ claims that the Mexican subsidiary falsely recorded the payments to its customs broker’s subagents as payments to its customs broker, and payments that included bribes as payment for customs services, causing Jerds and ultimately Biomet, to falsify their books and records. As a result of the scheme, the DOJ claims that Biomet’s subsidiaries paid $980,774 to the customs broker’s subagents, knowing that at least part of this amount would be passed on to customs officials, and disguised the bribe payments.

On January 12, 2017, the DOJ announced that it had entered into a plea agreement with Jerds for violations of the books-and-records provision of the FCPA. According to the agreement, Jerds was not required to pay a criminal penalty on account of Biomet’s willingness to pay a criminal penalty of $17,460,300 as part of a deferred prosecution agreement. The SEC separately resolved an enforcement action against Biomet wherein the company agreed to pay a civil sanction of $13,022,805.
:
Books and records (Issuer)
:
Plea
:
Jerds was not required to pay a criminal penalty as result of Zimmer Biomet's agreement to pay $17,460,300 as part of a deferred prosecution agreement
:
Not stated.
:
0
:
Agent of Issuer
:
U.S.
:
United States
:
Customs Clearance
:
Not stated.
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Cash, Wire/check
:
Customs Broker or Agent/Consultant
:
Not stated.
:
Mexico
:
No
:
No