United States v. AGA Medical Corp. (D. Minn. 2008)
Date Filed
06/03/2008
Enforcement Agency
DOJ
Countries
China
Foreign Official
Physicians employed at state-owned hospitals; officials of China’s State Intellectual Property Office.
Date of Conduct
1997 to 2005
Nature of Business
Sale of medical devices.
Influence to be Obtained
AGA Medical Corporation (“AGA”), a U.S.-based corporation, manufactured and sold medical devices for the minimally invasive treatment of congenital heart defects. AGA marketed and sold its products in over 90 countries through a network of local distributors and direct sales. Between 1997 and 2005, AGA, a high-ranking officer of AGA, and other AGA employees agreed to make corrupt kickback payments to physicians employed at state-owned hospitals. The payments were made through AGA’s Chinese distributor. In exchange for these payments, the physicians directed the hospitals to purchase AGA’s products. In addition, between 2000 to 2002, AGA and a high-ranking officer of AGA agreed to make payments through the same distributor to officials of the State Intellectual Property Office to have patents for AGA products approved.
Enforcement
On June 2, 2008, AGA entered into a three-year deferred prosecution agreement, admitting to the alleged conduct and agreeing to pay a $2 million penalty and to retain an independent compliance monitor for a period of three years.
Amount of the Value
At least $480,000.
Amount of Business Related to Payment
$13.5 million.
Intermediary
Chinese Distributor.
Total Sanction
$ 2,000,000
Compliance Monitor
Yes
Reporting Requirements
No
Case is Pending?
No
Defendants
AGA Medical Corp.
Citation
United States v. AGA Medical Corp., No. 0:08-cr-00172 (D. Minn. 2008).
Date Filed
06/03/2008
Filed Under Seal
No
Date Case Was Unsealed
03/07/2018
FCPA Statutory Provision
Anti-Bribery
Conspiracy: Anti-Bribery
Other Statutory Provision
None
Disposition
Deferred Prosecution Agreement
Defendant Jurisdictional Basis
Domestic Concern
Defendant's Citizenship
United States
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