Indiana co. to pay $17.2M for making bribes
WASHINGTON (Legal Newsline) -- An Indiana medical device company will $17.2 million for bribes made in Latin America and China.
The Department of Justice said March 26 that "the company has entered into a deferred prosecution agreement to resolve improper payments by the company and its subsidiaries in violation of the Foreign Corrupt Practices Act."
Biomet Inc. is headquartered in Warsaw, Ind.. The arrangement was filed in U.S. District Court in the District of Columbia. According to the complaint, "Biomet, its subsidiaries, employees and agents made various improper payments from approximately 2000 to 2008 to publicly-employed health care providers in Argentina, Brazil and China to secure lucrative business with hospitals.
"During this time, more than $1.5 million in direct and indirect corrupt payments were made."
The company also fraudulently recorded the transactions. It referred to them as "commissions," "royalties," "consulting fees" and "scientific incentives."
Biomet will pay a $17.28 million criminal penalty and retain a compliance monitor for 18 months. DOJ noted that the company cooperated with the investigation and received a reduction in its penalty as a result of its cooperation in the ongoing investigation of other companies and individuals.
The company also will pay $5.4 million in disgorgement of profits, including pre-judgment interest as part of a settlement with the U.S. Securities and Exchange Commission.