Case Detail

In re Micrus Corp. (2005)


Source Documents

Case Details

  • Case Name
  • In re Micrus Corp. (2005)
  • Date Filed
  • 02/28/2005
  • Enforcement Agency
  • DOJ
  • Foreign Official
  • Physicians at State-Owned Hospitals.
  • Date of Conduct
  • 2002 to 2004
  • Nature of Business
  • Development and sale of medical devices known as embolic coils by the Micrus Corporation (“Micrus”), a privately-held U.S. company.
  • Influence to be Obtained
  • After conducting investigations, Micrus and the DOJ determined that certain officers, employees, agents and salespeople paid more than $105,000 disguised in Micrus’s books as stock options, honorariums, and commissions, to doctors at state-run hospitals in France, Turkey, Spain and Germany.  In exchange for these payments, the hospitals purchased Micrus’s products.  An additional $250,000 was comprised of payments for which Micrus did not obtain the necessary prior administrative or legal approval as required under the laws of the relevant foreign jurisdiction.
  • Enforcement
  • The DOJ and Micrus entered into a non-prosecution agreement on March 2, 2005 whereby Micrus agrees to certain conditions in exchange for a promise from the government that Micrus will not be prosecuted for these violations.  If Micrus fails to comply with any of the terms of the agreement for a period of two years, the government will be free to prosecute Micrus for these violations.  Among other things, Micrus agreed to pay a fine of $450,000, accept responsibility for the misconduct, continue to cooperate with DOJ, adopt an FCPA compliance program as well as a set of internal controls designed to prevent future violations, and retain an independent compliance expert for a period of three years.
     
    According to an August 2008 SEC filing, the monitor filed his final report with the the DOJ in May 2008, and in July 2008, the DOJ confirmed that the monitorship had concluded.  The company has reaffirmed its commitment to take all reasonable steps to ensure that it remains in compliance with the FCPA.
     
  • Amount of the Value
  • More than $105,000.
  • Amount of Business Related to Payment
  • Not Stated.
  • Intermediary
  • None
  • Total Sanction
  • $ 450,000
  • Compliance Monitor
  • No
  • Reporting Requirements
  • No
  • Case is Pending?
  • No

Defendants

Micrus Corp.

  • Citation
  • In re Micrus Corp. (2005).
  • Date Filed
  • 02/28/2005
  • Filed Under Seal
  • No
  • FCPA Statutory Provision
    • Anti-Bribery
  • Other Statutory Provision
  • None
  • Disposition
  • Non-Prosecution Agreement
  • Defendant Jurisdictional Basis
  • Domestic Concern
  • Defendant's Citizenship
  • United States
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