FCPA Violations by Chinese Subsidiary
Cardinal Health agreed to pay $8.8 million to resolve charges that it violated the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act (FCPA). According to the Securities and Exchange Commission (SEC), Cardinal’s internal accounting controls were not sufficient to detect improper payments made by employees of its former Chinese subsidiary, Cardinal China. The SEC alleged that, between 2010 and 2016, Cardinal China made improper payments to Chinese government-employed healthcare professionals and to employees of state-owned retail companies in order to increase sales for a European dermocosmetic company, and that Cardinal received a percentage of profits from sales derived from the improper payments. Without admitting or denying the SEC’s findings, Cardinal consented to the entry of an order requiring the company to pay $5.4 million in disgorgement, $916,887 in prejudgment interest, and a $2.5 million civil penalty.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement
|Cardinal Health, Inc.||$8,816,887|