ANTICORRUPTION DEVELOPMENTS –
Olympus to Pay $646 Million for AntiKickback and FCPA Violations -
Early this month, Olympus Corp. of the Americas (OCA) settled government investigations related to violations of the U.S. AntiKickback Statute (AKS) and the Foreign Corrupt Practices Act (FCPA). OCA will pay $623 million to settle criminal and civil allegations of AKS violations, and the company’s Latin American subsidiary (OLA) will pay $22.8 million to settle allegations of FCPA violations. OLA entered into a three year Deferred Prosecution Agreement (DPA) with the Department of Justice (DOJ) Fraud Section under which it agreed to hire a compliance monitor and to implement various compliance enhancements. OCA entered into a separate DPA related to the AKS violations and agreed to hire the same monitor. According to the DOJ, OCA obtained more than $600 million in sales as a result of kickbacks paid to doctors and hospitals in the United States and more than $7 million in sales from bribes that OLA paid to health care practitioners at government-owned facilities in Central and South America. In addition to cash payments, OLA also paid for personal travel and provided heavily discounted equipment to physicians working for government facilities.
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