This post highlights FCPA enforcement actions concerning conduct (in whole or in part) in Georgia and Ukraine.
Georgia
The enforcement action concerned conduct in Georgia and the allegations were: “From approximately November 2006 to December 2009, Linde, through Spectra Gases, Inc., a company that Linde acquired in October 2006, made corrupt payments to high-level officials at the National High Technology Center (NHTC) of the Republic of Georgia, a 100% state-owned and-controlled entity, in connection with its purchase of certain income-producing assets from the NHTC.”
In connection with the failed “Africa Sting” enforcement action (in which an FBI agent posed as a Defense Minister in Gabon), an individual was also charged in connection with an alleged bribery scheme in Georgia. Specifically, in connection with the sale of military and law enforcement equipment to the government of Georgia, the individual allegedly “with the assistance of corrupt sales agents, kn[ew] that the sales agents would make corrupt payments to Georgian government officials to assist in obtaining and retaining business from the government of Georgia.” This charge, along with the other Africa Sting charges, were ultimately dismissed.
Ukraine
The enforcement action concerned conduct in Russia, Ukraine, and Mexico.
As to Ukraine, the allegations were: “Between 2001 and 2011, Teva, through its employees and agents, together with others, agreed to pay and provide things of value to Ukrainian Official [described as a high-ranking official within the Ukrainian Ministry of Health who held official positions at government agencies and on government committees and who could take official action on, and exert official influence over, matters related to the registration and pricing of pharmaceutical products in Ukraine] to corruptly influence the Ukrainian government in approving the registration of Teva pharmaceutical products in Ukraine, which thereby allowed Teva to market and sell its products in the country.”
The enforcement action concerned conduct in Russia, Ghana, Israel, Kazakhstan, Ukraine, and Vietnam.
As to Ukraine, the allegations were: “From at least 2001 through early 2011, BK Medical participated in hundreds of highly suspicious transactions at its distributors’ direction which posed a significant risk of bribery or other improper conduct. The suspicious transactions involved BK Medical’s distributor in [several countries including Ukraine]. “Over this period, BK Medical served as a conduit for at least 80 payments to third parties [in several countries] pursuant to arrangements with these other distributors, totaling approximately $3.8 million. BK Medical’s participation in these payment arrangements with its distributors created a significant risk that BK Medical was facilitating bribery or other prohibited conduct, such as embezzlement or tax evasion.”
The enforcement action concerned conduct in Ukraine and Venezuela.
As to Ukraine, the allegations were: “At certain times between 2002 and 2008, [affiliate entities] paid approximately $22 million to two third-party vendors so that they could pass on nearly all of that money as bribes to Ukrainian government officials to obtain over $100 million in accumulated value added tax (“VAT”) refunds. These payments were recorded by [the entities] in their books and records as insurance premiums and other business expenses.”
