Travel and Entertainment Archives

DOJ Announces 2020 Criminal Charges Against Individuals In Connection With Alleged Marshall Islands Bribery Scheme

By Mike Koehler on September 6, 2022 in 2022 Enforcement Action, Cary Yan, DOJ Enforcement Action, Gina Zhou, Individual Enforcement Action, Marshall Islands, Travel and Entertainment

Last Friday, the DOJ announced that two Marshall Island nationals (Cary Yan and Gina Zhou – pictured) arrived in the U.S. after being extradited from Thailand based on 2020 criminal charges that the individuals violated the Foreign Corrupt Practices Act (and other laws) in connection with an alleged scheme to bribe elected officials in the Republic of the Marshall Islands (RMI) in exchange for passing certain legislation.

According to the indictment, Yan and Zhou acted as officers, directors, employees, and agents of a New York City based non-governmental organization (NGO) and, while in New York City and other locations in U.S. territory, to offer and pay bribes to government officials in the RMI to pass certain legislation that would benefit the business interests of Yan, Zhou and their associates.

Herbalife Resolves $123 Million Enforcement Action – Becoming The Latest Company To Resolve A Matter In Connection With Obtaining A Direct Selling Permit In China

By Mike Koehler on August 31, 2020 in 2020 Enforcement Action, China, DOJ Enforcement Action, Herbalife, Permits / Licenses / Customs / Tax, SEC Enforcement Action, Travel and Entertainment

In 2014, Avon resolved a Foreign Corrupt Practices Act enforcement based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In 2016, Nu Skin Enterprises resolved an FCPA enforcement action based in large part on obtaining a direct selling permit in China. (See here for the prior post).

In the latest enforcement action involving another company in the same general industry involving the same general conduct, the DOJ and SEC recently announced (here and here) that Herbalife agreed to pay approximately $123 million to resolve a parallel DOJ and SEC enforcement action. The corporate action follows the DOJ and SEC’s November 2019 enforcement action against former Herbalife China executives Yanliang Li (a citizen of China and former Managing Director of a Chinese division of Herbalife) and Hongwei Yang (a citizen of China and former head the External Affairs Department of a Chinese division of Herbalife).

Novartis Joins The Repeat Offender Club – This Time Paying Approximately $347 Million To Resolve An FCPA Enforcement Action

By Mike Koehler on June 26, 2020 in 2020 Enforcement Action, Distributor Issues, DOJ Enforcement Action, Foreign Issuers, Greece, Healthcare Products, Healthcare Providers As Foreign Officials, Novartis, Pharmaceutical Industry, SEC Enforcement Action, South Korea, SOX Certification Issues, Third Parties, Travel and Entertainment, Vietnam

What happens when the Greek, Swiss, and South Korean subsidiaries of a Swiss company engage in improper conduct in Greece, Vietnam and South Korea? Why of course, approximately $345 million flows into the U.S. treasury.

Yesterday, Novartis joined the long and growing list of FCPA repeat offenders as the DOJ and SEC announced (see here and here) a combined approximate $347 million enforcement action. (As highlighted in this prior post, in 2016 Swiss pharmaceutical company Novartis coughed up $25 million to resolve a SEC FCPA enforcement action focused on the conduct of its indirect Chinese subsidiaries).

Yesterday’s enforcement action included a DOJ component (in which the company agreed to pay approximately $234 million) and a SEC component (in which the company agreed to pay approximately $113 million).

The DOJ’s First FCPA DPA Involved Monsanto

By Mike Koehler on March 24, 2020 in 2005 Enforcement Actions, Agriculture Industry, Anything of Value, Charles Martin, DOJ Enforcement Action, Gifts, Indonesia, Invoice Scheme, Monsanto, SEC Enforcement Action, Travel and Entertainment, Unsuccessful Bribery Schemes

[This post is part of a periodic series regarding “old” FCPA enforcement actions]

In early January 2005, the DOJ used a deferred prosecution agreement for the first time to resolve a Foreign Corrupt Practices Act enforcement action. The “guinea pig” was Monsanto.

This post highlights the DOJ and parallel SEC enforcement action against the company (aggregate settlement amount of $1.5 million) based on conduct in Indonesia.

Cardinal Health Resolves $8.8 Million Enforcement Action Based On A Former Entity Maintaining And Operating Marketing Accounts For Certain Customers In China

By Mike Koehler on March 2, 2020 in 2020 Enforcement Action, Cardinal Health, Gifts, Merger Issues, Pharmaceutical Industry, SEC Enforcement Action, Travel and Entertainment

Last Friday the SEC announced that Cardinal Health Inc. agreed to pay $8.8 million to resolve a Foreign Corrupt Practices Act enforcement action.

The action is based on a Cardinal entity (acquired in 2010 and sold in 2018) maintaining and operating marketing accounts for certain customers in China.

In summary fashion, the SEC order states:

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DOJ Announces 2020 Criminal Charges Against Individuals In Connection With Alleged Marshall Islands Bribery Scheme

Herbalife Resolves $123 Million Enforcement Action – Becoming The Latest Company To Resolve A Matter In Connection With Obtaining A Direct Selling Permit In China

Novartis Joins The Repeat Offender Club – This Time Paying Approximately $347 Million To Resolve An FCPA Enforcement Action

The DOJ’s First FCPA DPA Involved Monsanto

Cardinal Health Resolves $8.8 Million Enforcement Action Based On A Former Entity Maintaining And Operating Marketing Accounts For Certain Customers In China

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