Settlements

ST-144
Diagnostic Products Corporation / DPC (Tianjin) Co. Ltd.
Diagnostic Products Corporation
United States
Department of Justice
China
2005
05/20
Unknown
Legal Person
Criminal
Guilty Plea
Criminal Fine
$2,000,000.00
$2,000,000
$0
Art.16, Art.26
Art. 1, Art. 2
Bribery of foreign officials
Bribery of foreign officials
Yes
According to the US Department of Justice Report to Congress, Appendix C "Summaries of Foreign Corrupt Practices Act Enforcement Actions by the United States, January 1, 1998 - September 30, 2010," Diagnostic Products Corporation, at 109-110: From late 1991 through December 2002, DPC (Tianjin) Co., Ltd., a subsidiary of Diagnostics Product Corporation paid approximately $1.6 million in bribes in the form of illegal "commissions" to physicians and lab personnel employed at government-owned hospitals in China in exchange for agreements that the hospitals would obtain DPC Tianjin's products and services. In most cases, bribes were paid in cash. The "commissions," typically between 3 percent and 10 percent of sales, allowed DPC Tianjin to earn approximately $2 million in profits from the sales. DPC Tianjin pleaded guilty to violating the FCPA and paid criminal fine of $2 million; to resolve SEC charges, DPC agreed to the issuance of an order to cease-and-desist from future violations and to disgorge $2,038,727 and $749,895 in prejudgment interest to the SEC. Resulting Criminal Enforcement Actions: US v. DPC (Tianjin) Co., Ltd. (C.D. Cal., May 20, 2005); Resulting Civil/Administrative Enforcement Action: In the Matter of Diagnostic Products Corporation (May 20, 2005).