SEC Fines Bristol-Myers Squibb $14 Million For Allegedly Bribing Chinese Doctors

The Securities and Exchange Commission charged Bristol-Myers Squibb with violations of the Foreign Corrupt Practices Act for illegal cash payments and other benefits provided by its joint venture in China to health care providers at state-owned and state-controlled hospitals. The payments were made to gain more than $11 million in profits from prescription sales to those hospitals. BMS China sales representatives gave state-run Chinese health care providers cash, jewelry and other gifts, meals, travel, entertainment, and sponsorships for conferences and meetings, the SEC said. BMS China then recorded the bribes as legitimate business expenses. Bristol-Myers Squibb will pay more than $14 million to report to the SEC for a two-year period on the status of its remediation and implementation of anti-corruption compliance measures. The company did not admit or deny the allegations.