Eli Lilly Pays $29.4 Million to settle charges it bribed in Russia, Brazil, China and Poland

Big Pharma Company Eli Lilly paid $29.4 million to settle charges leveled by the Securities and Exchange Commission that it violated the Foreign Corrupt Practices Act by making improper payments in Russia, Brazil, China and Poland. According to the SEC Eli Lilly subsidiaries paid millions to third parties chosen by government customers and these offshore entities rarely provided services and in some cases funneled moneys to government officials to obtain more business for the company. In China, company employees allegedly falsified expense reports and used the money to pay for spa treatments, jewelry and other gifts and cash to government employed doctors. One SEC official stressed that when a parent company learns of tell-tale signs of bribery involving a subsidiary it must take immediate action to assure that it is not done. Jeffrey Newman represents whistleblowers including those who report foreign bribes.