SciClone SEC Settlement Highlights Risk in China

Travel Agencies, Fapiao and Hospitality: $12.8 Million SciClone Settlement Highlights Diversity of Risk in China
– The FCPA Report

The FCPA Report interviewed Manatt's Jacqueline Wolff, co-chair of the firm's Corporate Investigations and White Collar Defense practice, about SciClone Pharmaceuticals' recent settlement of SEC charges claiming it violated the control provisions of the FCPA. The company was charged for bribery of government officials by means of language classes, travel and entertainment, all of which were falsified in expense reports.

Wolff clarified that "much of the more egregious conduct charged appears to have taken place about ten years ago; that is, before the industry - in particular in China - had woken up to the reach of the FCPA."

The FCPA Report also outlined advice to avoid such charges in the future. Wolff explained, "Clear guidance and training is always necessary when it comes to T&E and gifts, particularly in the life sciences industry. Other industries routinely take customers out for meals and provide Christmas and other holiday gifts. . . . You cannot blame untrained employees outside of the U.S. for not realizing the pitfalls. They have to be carefully and simply trained in person so that they can ask questions in a safe environment."



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