Bristol-Myers to Pay $14 Million to Settle SEC's Probe of Bribery in China
October 05 2015 - 1:15PM
Dow Jones News
By Tess Stynes
Bristol-Myers Squibb Co. (BMY) agreed to pay more than $14
million to settle allegations that the pharmaceutical company's
China joint venture provided illegal payments and other benefits to
Chinese health-care providers to boost sales.
The U.S. Securities and Exchange Commision accused Bristol-Myers
of lacking internal controls over the BMS China venture's
interactions with health-care providers and failing to respond
effectively to signs that sales personnel were providing bribes and
other benefits to boost sales.
According to the SEC order, Bristol-Myers netted roughly $11
million in profits from the actions. The company agreed to turn
over $11.4 million of profits plus prejudgment interest of $500,000
and pay a civil penalty of $2.75 million.
Bristol consented to the order without admitting or denying the
findings that it violated the internal controls and record-keeping
provisions of the Foreign Corrupt Practices Act. A Bristol-Myers
spokesman added that it has resolved the matter with the SEC.
The SEC accused BMS China sales representatives of providing
health-care providers in China over five years with cash, jewelry
and other gifts to secure and raise sales. According to the SEC,
the unit inaccurately recorded such spending as legitimate business
expenses.
Among the SEC's findings, Bristol is accused of failing to
investigate claims by terminated BMS China employees that faked
invoices, receipts and purchase orders were widely used to fund the
improper payments.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 05, 2015 13:00 ET (17:00 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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