FCPA Violations by Philips

FCPA Violations by PhilipsFCPA Violations requires Philips to pay pay disgorgement of $3,120,597 and prejudgment interest of $1,394,581 to the United States Treasury

FCPA Violations by Philips

Since at least 1999, Philips has participated in public tenders to sell medical equipment to Polish healthcare facilities. From 1999 through 2007, in at least 30 transactions, employees of Philips Poland made improper payments to public officials of Polish healthcare facilities to increase the likelihood that public tenders for the sale of  medical equipment would be awarded to Philips.

Representatives of Philips Poland entered into arrangements with officials of various Polish healthcare facilities whereby Philips submitted the technical specifications of its medical equipment to officials drafting the tenders who incorporated the specifications of Philips’ equipment into the contracts. Incorporating the specifications of Philips’ equipment in the tenders’ requirements greatly increased the likelihood that Philips would be awarded the bids.

Certain of the healthcare officials involved in the arrangements with Philips also decided whom to award the tenders, and when Philips was awarded the contracts , the officials were paid the improper payments by employees of Philips Poland.
The improper payments made by employees of Philips Poland to the Polish healthcare officials usually amounted to 3% to 8% of the contracts’ net value.

Koninklijke Philips Electronics N.V. is a Netherlands-based parent of an affiliation of companies that manufacture and supply goods and services related to healthcare,consumer lifestyle,lighting business sectors.


Global Icons who Laundered proceeds of corruption

global icons

According to a first of its kind report on ‘Ascertaining size of corruption in India with respect to money laundering’, an individual spent over Rs 2,000 as a cost of corruption in 2009, which is 260 per cent higher than the amount borne by a citizen ten years back. “In the past decade, money laundered out of India was at least Rs 18,86,000 crore or $419 billion. If the gross domestic product-based money laundering model is translated to quantify the corruption, then the size of corruption in the last decade is Rs 15,55,000 crore or $345 billion in India.
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Accounting fraud in TheStreet

The Securities and Exchange Commission today charged TheStreet, Inc. and three executives in connection with a 2008 accounting fraud at a former subsidiary of TheStreet, Inc. The fraud allowed TheStreet to report artificially inflated revenue and misstated operating income or loss in each period of 2008.

The SEC alleges that throughout 2008, Eric Ashman, TheStreet’s former Chief Financial Officer, aided and abetted the fraud by improperly and prematurely recognizing revenue based on several of the former subsidiary’s transactions. According to the complaint, Ashman caused TheStreet to recognize revenue when he knew or recklessly disregarded that there was no basis for revenue recognition.

Gregg Alwine and David Barnett, co-presidents of the subsidiary, are alleged to have aided and abetted the fraud by entering into sham transactions, and fabricating and backdating contracts and other documents. In addition, Barnett is charged with leading TheStreet’s auditor to believe that the subsidiary had performed services and thereby earned revenue on a specific transaction when in fact it had not performed those services.

For its part, TheStreet is charged with lacking appropriate internal controls over its subsidiary’s revenue and with violating books and records and reporting provisions of the securities laws.

Source url: SEC


Rolls Royce connection with President Suharto

rolls royce

The U.K. Serious Fraud Office may be investigating an alleged $20 million payment from Rolls Royce to the son of the former Indonesian ruler who helped the company win an order for aircraft engines.

Last week, the company confirmed that it was in talks with the SFO regarding payments to intermediaries in Indonesia and China.

The whistleblower in this case ‘claimed that Tommy Suharto – a son of the late President Suharto – received $20 million and a Rolls Royce car to persuade the national airline, Garuda, to order Rolls Royce Trent 700 engines in 1990.

In a prepared statement, the company said last week, “It is too early to predict the outcomes [of the investigation], but these could include the prosecution of individuals and of the company.” Read Our previous Coverage

President Suharto held office for 31 years until he was forced out by rioting in 1998.

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Clarification of Bharti-Walmart on Lobbying expenses

lobbying expenses

Bharti Walmart has denied reports that the retail giant pressed U.S. lawmakers to help gain access to foreign markets.

The allegation that a routine US lobbying disclosure form reflects improper conduct on our part in India is false.  This disclosure has nothing to do with political or governmental contacts with India Government officials.  It shows that our business interest in India was discussed with U.S. Government officials—along with 50 or more other topics during a 3 month period.  

Under U.S. law, on a quarterly basis, all companies which meet certain time and expenses thresholds, are required to disclose issues and expenditures spent in connection with contacts with the United States Government, including staffing cost, association dues, and payments to consultants.

This is not unique to Walmart. All organizations which expend more than $11,500 annually on lobbying activities and employ at least one lobbyist must register and file the quarterly reports. In the third quarter of 2012, lobbyists and companies filed thousands of forms.  Per a Washington D.C. publication, Roll Call, in the first quarter of this year, 143 organizations reported expenses of more than $1 million

Our Washington office naturally had discussions with U.S. Government officials about a range of trade and investment issues that impact our businesses in the U.S. and worldwide and disclosed this in accordance with the law.