Tagged: China

Attention U.S. Exporters to Hong Kong: Have you Reviewed Your Export Licenses and Trade Compliance Program to Account for Recent Changes?

Jessica Sanderson, Partner at The Volkov Law Group, rejoins us for a posting on recent changes to export regulations involving Hong Kong. Jessica can be reached at jsanderson@volkovlaw.com. Until recently, the U.S. government treated Hong Kong and China as two separate destinations for export control purposes and in many cases provided Hong Kong with preferential treatment.  At the end of 2020, however, on December 23,...

Commerce Department Restricts Licensing for Exports of National Security Items to China, Venezuela and Russia

Janet Longo, Regulatory Compliance Manager, at the Volkov Law Group, joins us for a blog posting on the Commerce Department’s changes to export licensing policies and procedures for national security items destined to China, Russia and Venezuela.  The Volkov Law Group has extensive expertise with complicated export license applications and is happy to provide you with additional resources to assist you with your license applications...

Novartis and Alcon: A Review of Bribery and Accounting Violations (Part II of III)

Novartis and Alcon engaged in separate but significant bribery schemes.  Considering the fact that Novartis had a similar violation in 2016 in China involving much of the same conduct, Novartis’ conduct reflects a weak corporate culture of compliance. Novartis’ conduct is all the more troubling given its enforcement record on domestic False Claims Act and anti-kickback prosecutions.  Novartis has real compliance and culture problems, apparently...

United Technologies Pays $13.9 Million to Settle FCPA Charges (Part I of II)

The SEC’s FCPA Unit had a good week last week – they announced a second FCPA settlement along with the Sanofi case.  The latest to fall was United Technologies that agreed to pay $13.9 million for bribes paid by its elevator and aircraft engine businesses. The SEC FCPA settlement focused on Azerbaijan and China relating to third-party bribery payments.  In addition to these two bribery...

GSK Settles SEC FCPA Case for $20 Million

The SEC finished with the last nail in GSK China’s coffin by announcing a $20 FCPA million settlement for GSK’s violations in China. The Justice Department declined to prosecute this case. In 2014, a Chinese court fined GSK $490 million for domestic bribery. GSK’s former China executive was given a three year suspended sentence and deported. A number of Chinese nationals were given prison sentences...

Akamai and Nortek – DOJ Touts Declinations Under FCPA Pilot Program

DOJ’s FCPA Unit knows what they are doing. In the immediate weeks after the release of the FCPA Pilot Program, DOJ publicly released two declination letters for Akamai Technologies and Nortek, Inc. and the SEC announced disgorgement settlements of $671 thousand and $321 thousand, respectively. These two actions, however, will not solve DOJ’s bigger problem – the FCPA Pilot Program needed to offer a bigger...

Doing Business in China Should Be “Scary”

Lauren Connell, Managing Associate at The Volkov Law Group, joins us again for another posting on corruption risks in China.  Her profile is here and she can be reached at lconnell@volkovlaw.com. A little fear is healthy. It will keep you vigilant and aware. At this point if corporate compliance departments are not a little fearful of doing business in China then their managers and employees...

Drug and Medical Device Corruption Risks in China

Medical device and pharmaceutical companies know the risks of conducting business in China. Company after company has had to settle FCPA enforcement actions in China. Many of these enforcement actions include fact patterns that are pretty consistent. At the heart of these bribery cases are distributors who are used to funnel bribery payments to healthcare professionals. The expectations and modes of operation are fairly consistent...

Counterfeit Goods: Third Party Due Diligence Beyond the FCPA

Lauren Connell, Managing Associate at The Volkov Law Group, joins us again for a posting about third-party due diligence.  Lauren’s profile is here, and she can be reached at lconnell@volkovlaw.com. Most discussions of third party due diligence begin with an explanation of indirect liability and the “deliberate ignorance” standard of knowledge the FCPA imposes. With so much focus on anti-bribery it is easy to lose...

Four Clear Messages from Bristol-Myers Squibb FCPA Enforcement Action

The SEC’s FCPA enforcement action for $14.6 million against Bristol-Myers Squibb (“BMS”) in China provides a textbook example of how things can go wrong in China. For the compliance practitioner (as well as CEO and senior executives) in the pharmaceutical and medical device industries, the BMS enforcement action should be read and digested as a quick checklist of important principles. The facts underlying the BMS...