In the Matter of Nordion (Canada) Inc. (2016)
In the Matter of Mikhail Gourevitch (2016)

• Case Name
• In the Matter of Nordion (Canada) Inc. (2016)
  In the Matter of Mikhail Gourevitch (2016)

• Date Filed
• 03/03/2016

• Enforcement Agency
• SEC

• Countries
• Russia

• Foreign Official
• Unnamed Russian government officials.

• Date of Conduct
• 2004 to 2011

• Nature of Business
• Nordion (Canada) Inc. is the successor in interest to Nordion, Inc., a global health science company and provider of medical isotopes and sterilization technologies used by pharmaceutical and biotechnology companies, medical device manufacturers, hospitals, medical clinics, and research laboratories in more than 60 countries.  Nordion was headquartered in Ottawa, Canada and maintained a class of stock that was traded on the New York Stock Exchange and was registered with the SEC.  In August 2014, Nordion was acquired by Nordion Canada.
  
  Mikhail Gourevitch, a dual Canadian and Israeli citizen, was formerly employed by Nordion as an Engineer.  From approximately 2004 until October 2011, Gourevitch facilitated, helped negotiate, and monitored consulting contracts between Nordion and a Russian third-party agent to license, register, and distribute TheraSphere—a Nordion liver cancer therapy, in Russia.

• Influence to be Obtained
• According to the SEC, at the recommendation of Gourevitch, Nordion engaged the services of a Russian businessman (the “Agent”) to assist the company in procuring a supply of cobalt-60 isotopes from the Russian government in 2000.  The Agent was allegedly a childhood friend of Gourevitch and had no experience in the nuclear power industry, nuclear medicine, or medical isotopes.  Nevertheless, after entering into a consulting agreement with the Agent, the SEC claims that the Agent was able to assist the company acquire the supply of cobalt-60 isotopes.
  
  Later in 2004, the SEC alleges that Nordion again approached the Agent to obtain government approval of a liver cancer treatment called TheraSphere.  According to the SEC, Nordion entered into a contract with the Agent to register, license, and distribute TheraSphere in Russia.  The SEC claims that to acquire approval, Gourevitch and the Agent attempted to bribe Russian officials by using a portion of the monies received from the Agent’s consulting agreement with Nordion as bribes.  The SEC claims that although Nordion had limited internal controls, which it failed to consistently apply, Gourevitch actively attempted to conceal the illicit scheme by manipulating budget estimates before they were reviewed by Nordion. In total, the SEC claims that Nordion paid the Agent $235,043 from 2005 to 2011 to obtain Russian regulatory approvals of TheraSphere.  The SEC notes that Nordion was ultimately unable to distribute TheraSphere in Russia and therefore did not earn any profits as a result of the scheme.  

• Enforcement
• On March 3, 2016, the SEC announced that it settled an enforcement action against Nordion for violations of the FCPA’s books-and-records and internal controls provisions.  Nordion agreed to pay a $375,000 civil penalty to settle the SEC’s charges. The SEC gave Nordion cooperation credit for inter alia its willingness to self-disclose the conduct, preform an extensive internal investigation, and report the findings to the SEC.  The SEC also announced a settlement with Gourevitch, in which he agreed to pay $100,000 in disgorgement and interest, as well as a civil penalty of $66,000.  The DOJ separately declined to bring charges against Nordion.

• Amount of the Value
• $235,043.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• Local Agent

• Citizenship of Parent Entity
• Canada

• Total Sanction
• $ 553,950

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 553,950

Nordion (Canada) Inc. 

• Citation
• In the Matter of Nordion (Canada) Inc., Admin. Proc. No. 3-17153 (Mar. 3, 2016); 

• Date Filed
• 03/03/2016

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• Canada

• Individual Sanction
• $375,000 

Mikhail Gourevitch

• Citation
• In the Matter of Mikhail Gourevitch, Admin Proc. No. 3-17152 (Mar. 3, 2016).

• Date Filed
• 03/03/2016

• Filed Under Seal
• No

• FCPA Statutory Provision

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Agent of Issuer

• Defendant's Citizenship
• Israel, Canada

• Individual Sanction
• $179,950