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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…
Chinese Subsidiary Pay-To-Prescribe
Novartis AG agreed to pay roughly $25 million to settle charges that it violated the Foreign Corrupt Practices Act when its China-based subsidiaries engaged in pay-to-prescribe schemes to increase sales. A Securities and Exchange Commission (SEC) investigation found that, from at least 2009 to 2013, 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 to China’s state health institutions. The SEC found that 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. Novartis paid more than $21 million in disgorgement of profits, plus a $2 million civil penalty and about $1.5 million in prejudgment interest.
- Misconduct Type
- Ethics
- Enforcement Agency
- SEC
- Contracting Party
- None
- Court Type
- Administrative
- Disposition
- Settlement
- Date of SEC Order
- 3/23/2016
Contractors Involved |
Penalty |
Total |
|
Novartis AG |
$25,050,104
|