SEC v. Eli Lilly and Company, Case No. 1:12-cv-02045 (D.D.C.). On December 20, 2012, the SEC announced charges against Eli Lilly and Company for violations of the Foreign Corrupt Practices Act (“FCPA”) for unlawful payments made to government officials in Russia, Brazil, China and Poland. According to the SEC’s complaint, Eli Lilly’s Russian subsidiary used offshore “marketing agreements” to pay money to third parties selected by government customers or distributors. These third parties did not provide services and occasionally helped send money to government officials in exchange for business. The company did not scrutinize these transactions for possible FCPA violations. Rather, the documentation was accepted at face value. The SEC alleges that when the Eli Lilly become aware of the possible FCPA violations, it did not limit the subsidiary’s use improper agreements. The Company’s subsidiaries in Brazil, China, and Poland also made improper payments to government officials or third-party entities associated. Without admitting or denying the charges, Eli Lilly consented to entry of a final judgment enjoining it from violating the anti-bribery, books and records, and internal controls provisions of the FCPA. The company also agreed to comply with certain undertakings including the retention of an independent consultant to review and make recommendations about its foreign corruption policies and procedures. Finally, Eli Lilly agreed to pay disgorgement of $13,955,196, prejudgment interest of $6,743,538, and a civil monetary penalty of $8.7 million for a total payment of $29,398,734.
- SEC Charges Microsoft Manager Brian Jorgenson and his Friend Sean Stokke with Insider Trading
- SEC Obtains Emergency Relief against Robert Helms and Janniece Kaelin in Alleged Ponzi Scheme
- SEC Charges Fifth Third Bancorp and its Former CFO Daniel Poston with Fraud for Accounting Practices during the Financial Crisis
- SEC Settles Insider Trading Case against Charles Langston III
- SEC Settles Penny Stock Case Against Curt Kramer for $1.4 Million
Other BraunHagey Blogs