Case Detail

In the Matter of Diagnostic Products Corp. (2005)


Source Documents

Case Details

  • Case Name
  • In the Matter of Diagnostic Products Corp. (2005)
  • Date Filed
  • 03/20/2005
  • Enforcement Agency
  • SEC
  • Countries
  • China
  • Foreign Official
  • Foreign official’s physicians and laboratory workers at government-owned hospitals.
  • Date of Conduct
  • 1991 to 2002
  • Nature of Business
  • Provision of medical products and hospital services by DPC Co. Ltd., formerly Tianjin Depu Biotechnological and Medical Products Inc. (“Tianjin”), a Chinese subsidiary of Diagnostics Products Corporation (“DPC”).  DPC, a U.S. corporation, is a worldwide provider of immunodiagnostic systems and reagents.
  • Influence to be Obtained
  • Payments were made, disguised as commissions, by senior employees of Tianjin in exchange for agreements that hospitals would retain Tianjin’s products and services.
  • Enforcement
  • In a company filing dated August 2005, DPC disclosed that it had agreed to pay approximately $4.8 million as part of a settlement with the SEC and DOJ, consisting of $2.0 million in fines and approximately $2.8 million in disgorgement of profits and interest.  In addition, Tianjin pled guilty to violations of the FCPA, receiving a cease‑and‑desist order, and agreed to take actions to avert future violations.
  • Amount of the Value
  • $1.6 million.
  • Amount of Business Related to Payment
  • Not Stated
  • Intermediary
  • Not Stated
  • Citizenship of Parent Entity
  • United States
  • Total Sanction
  • $ 2,788,622
  • Compliance Monitor
  • No
  • Reporting Requirements
  • No
  • Case is Pending?
  • No
  • Total Combined Monetary Sanction
  • $ 4,788,622

Defendants

Diagnostic Products Corp. 

  • Citation
  • In the Matter of Diagnostic Prods. Corp., Admin. Proc. File No. 3-11933 (May 20, 2005).
  • Date Filed
  • 06/20/2005
  • Filed Under Seal
  • No
  • FCPA Statutory Provision
    • Anti-Bribery
    • Books-and-Records
    • Internal Controls
  • Other Statutory Provision
  • None
  • Disposition
  • Cease-and-Desist Order
  • Defendant Jurisdictional Basis
  • Issuer
  • Defendant's Citizenship
  • United States
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