Wednesday, October 28, 2020

German medical firm, Fresenius to pay $231m for bribing officials in Saudi Arabia, Morocco

-

A German medical-care company, Fresenius has been bribing public health officials in countries around the world, including Saudi Arabia, Morocco and Turkey, and has agreed to pay $231m in fines for its misconduct, the US government said.

Fresenius Medical Care was found in violation of the Foreign Corrupt Practices Act, which makes it illegal for US-based companies to bribe foreign officials, the US Department of Justice said on Friday.

The firm, which specialises in dialysis and kidney care, has more than 2,400 US locations, according to its website. It is also publicly traded on the New York-based NASDAQ stock exchange.

“Fresenius doled out millions of dollars in bribes across the globe to gain a competitive advantage in the medical services industry, profiting to the tune of over $140 million,” said Assistant US Attorney General Brian A Benczkowski in a statement.

- Advertisement -

In Saudi Arabia, the firm awarded sham contracts to doctors employed by the government in order to continue to do business with the kingdom, the US Justice Department said.

“Fresenius also entered into fake collection commission agreements, made payments to a government charity, and gave gifts and made payments to publicly employed doctors for travel with no business or educational justification, the company admitted,” according to the statement.

Related: Moroccan Army Opens Investigation Into Fresenius Bribery Scandal 

To funnel the money into the Gulf country without raising alarm bells internally, Fresenius wrote cheques to its own employees there that were then cashed out and handed to a general manager who repurposed them for bribes, according to US prosecutors.

13 countries

In Morocco, the company similarly bribed a state official to win contracts to provide services to military hospitals. The dollar amount of the bribes was not disclosed.

- Advertisement -

In regard to Turkey, the US Justice Department said Fresenius gave a government-employed doctor $74,000 worth of “joint venture shares” that resulted in the doctor making $356,000 in profit.

In exchange, the doctor directed business “from their public employer to Fresenius clinics” in the country, the department said.

Related: Fresenius Medical Care to pay $231 million to settle bribery charges

Fresenius also bribed officials in Angola, Spain and countries in West Africa, according to the US Justice Department. The misconduct continued in some countries until 2016, it said.

Over the past few years, the US Justice Department has been trying to encourage companies with potential Foreign Corrupt Practices Act violations to come forward and self-report them in exchange for prosecutorial declinations and lower penalties, Reuters reported on Friday.

While the Justice Department said Fresenius self-disclosed the misconduct in April 2012, it “did not timely respond” and “at times did not provide fulsome responses” to requests for information from the department.

A representative of Fresenius Medical Care could not immediately be reached for comment, Reuters said.

MUST READ

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Former Blue Bell Creameries CEO indicted for fraud linked to 2015 listeria outbreak

The former president and CEO of Blue Bell Creameries L.P., a Texas ice cream company, was indicted Tuesday on wire fraud charges in connection with a scheme...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

UAE suspends licences of 200 law firms over anti-money laundering compliance

Practicing licences of 200 law firms in the UAE have been suspended for a month for not following the prescribed procedures to combat money...

Australian court approves $920 million Westpac money laundering fine

The Federal Court of Australia has agreed on the deal struck between the Australian Transaction Reports and Analysis Centre (AUSTRAC) and Westpac, ordering the Australian...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks