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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

China Bribery and Fraud

The Chinese government accused Mark Reilly, former head of GlaxoSmithKline’s China operations, of directing a bribery and fraud scheme that resulted in higher drug prices and illegal revenue of more than $150 million. The government claimed that Reilly and two other Glaxo executives arranged secret payments to doctors, hospital staff and government officials in order to bolster Glaxo’s drug sales; conducted false transactions in order to transfer illegal gains made in China to overseas companies; and bribed officials to stop investigations of the company. In September 2014, a Chinese court imposed a fine on GlaxoSmithKline and sentenced Reilly and four other company managers to suspended prison terms of up to four years. According to a company press statement, the Changsha Intermediate People’s Court in Hunan Province, China ruled that GSK China Investment Co. Ltd offered money or property to non-government personnel in order to obtain improper commercial gains, and found the company guilty of bribing non-government personnel.

Misconduct Type
Ethics
Enforcement Agency
International
Contracting Party
None
Court Type
Criminal
Disposition
Found Guilty
Date of Formal Accusation
5/13/2014
Contractors Involved Penalty
Total
GlaxoSmithKline $487,000,000
Further Information Released
GSK Press Release (September 2014) 9/19/2014
GSK Press Release (July 2013) 7/16/2013

See also:

Federal Contractor Misconduct Database