SEC v. Monty Fu (D.D.C. 2007)

• Case Name
• SEC v. Monty Fu (D.D.C. 2007)

• Date Filed
• 10/09/2008

• Enforcement Agency
• SEC

• Countries
• Taiwan

• Foreign Official
• Doctors at state-owned hospitals in Taiwan.

• Date of Conduct
• 1985 to 2002

• Nature of Business
• The sale of radiopharmaceutical products to and the referral of patients to medical imaging centers by state-owned hospitals.  Monty Fu was the founder and former CEO and Chairman of Syncor International Corp. (“Syncor”).  Syncor’s subsidiary, Syncor Taiwan, sells radiopharmaceuticals and runs medical imaging centers in Taiwan.

• Influence to be Obtained
• From 1985 through 2002, Syncor Taiwan allegedly made payments to doctors at private and public hospitals in Taiwan for the purpose of influencing them to purchase or prescribe radiopharmaceutical products and, after 1997, to influence them to refer patients to medical imaging centers owned and operated by Syncor Taiwan

• Enforcement
• Without admitting or denying the allegations, Fu has agreed to settle the Commission’s charges by consenting to the entry of a final judgment permanently enjoining him from future violations and ordering him to pay a civil penalty of $75,000.
  
  In a related action, Syncor settled with the SEC and agreed to pay a civil penalty of $500,000.  Syncor also pleaded guilty to the criminal charges filed against it, and agreed to pay a fine of $2 million.

• Amount of the Value
• Total annual payments averaged $30,000 per year from 1989 to at least 1993, increasing to average over $170,000 per year from at least 1997 through the first half of 2002.

• Amount of Business Related to Payment
• Not Stated

• Intermediary
• Not Stated

• Total Sanction
• $ 75,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Related Enforcement Actions
• United States v. Syncor Taiwan, Inc. (C.D. Cal. 2002)
  SEC v. Syncor Int’l Corp. (D.D.C. 2002)
  

Monty Fu 

• Citation
• SEC. v. Fu, No. 07-cv-01735 (D.D.C. 2007).

• Date Filed
• 10/09/2008

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Internal Controls
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Complaint and Consent Order

• Defendant Jurisdictional Basis
• Agent of Issuer