The corruption cases databases are a product of the staff of the International Bank for Reconstruction and Development / The World Bank. It is intended for general information purposes only. The findings, interpretations, and conclusions expressed in the Database do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. Neither the World Bank Group nor its officers or employees shall be liable for any losses that may result directly or indirectly from the use of or reliance upon such information.
Novartis AG / Shanghai Novartis Trading Ltd (aka Sandoz China) and Beijing Novartis Pharma Co. Ltd.
Securities and Exchange Commission
Cease and Desist Order
Disgorgement of Profits; Prejudgment Interest; Civil Penalty
Falsification of Books and Records, Internal Controls Violations
No admission or denial of alleged offenses
According to the US Securities and Exchange Commission Press Release, "Novartis AG has agreed to pay $25 million to settle charges that it violated the Foreign Corrupt Practices Act (FCPA) when its China-based subsidiaries engaged in pay-to-prescribe schemes to increase sales.
An SEC investigation found that employees of two China-based Novartis subsidiaries gave money, gifts, and other things of value to health care professionals, which led to several million dollars in sales of pharmaceutical products to China’s state health institutions. The schemes, which lasted a period of years, involved certain complicit managers within Novartis’ China based subsidiaries. Novartis failed to devise and maintain a sufficient system of internal
accounting controls and lacked an effective anti-corruption compliance program to detect and prevent these schemes. As a result, the improper payments were not accurately reflected in Novartis’ books and records." (Source: US Securities and Exchange Commission, Litigation Release and In re: Novartis AG, Administrative Proceeding File No. 3-17177, March 23, 2016.)
US Securities and Exchange Commission, In re: Novartis AG, Administrative Proceeding File No. 3-17177, March 2, 2016, at https://www.sec.gov/litigation/admin/2016/34-77431.pdf; Litigation Release at https://www.sec.gov/litigation/admin/2016/34-77431-s.pdf.
Please help us ensure that StAR Asset Recovery Watch is as accurate and comprehensive as possible by sending us updated information regarding the cases currently in StAR Asset Recovery Watch, as well as information about cases for future inclusion in the database.
To report any errors or updated case information, please contact email@example.com. Please include the name of your organization, the country in which you reside, and "StAR Asset Recovery Watch" in the subject line.