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DynCorp discloses violation, fires compliance chief
Dec 06 2009

US defence contractor DynCorp has fired one of its top lawyers, after it was revealed earlier this week that the company had violated the US Foreign Corrupt Practices Act when it tried to speed up the issuance of visas and licenses related to its work for the US government overseas.


The company said it made a filing with the US Securities and Exchange Commission (SEC) on November 9 after it had discovered that as much as US$300,000 had been spent in a single questionable transaction. It also self-disclosed to the US Department of Justice. The SEC filing was not disclosed until earlier this month.


The money was paid to a subcontractor “in connection with servicing a single existing task order that the company has with a US government agency”, DynCorp said. The funds were used to expedite the issuance of a limited number of visas and licences from foreign government agencies, the company added.


Douglas Ebner, a spokesman for DynCorp, decline to further elaborate on the violation, but he told the Wall Street Journal that it makes clear to its employees that business must always be conducted legally and ethically.


“We found this internally, and voluntarily brought it to the Department of Justice and the SEC. We feel that it is very important to be proactive,” he added. The company said it has hired a consultant to investigate the matter further.


Both the SEC and the US Department of Justice declined to comment.


In a separate filing, the company also said that it had terminated the employment Curtis Schehr, a senior vice president, executive counsel, and the company’s chief compliance officer. DynCorp declined to comment on whether it was related to the FCPA violation.


Original Article: [link] and [link]

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Former pharmaceutical exec charged with bribery
Dec 06 2009

A UK-based former senior healthcare executive for US consumer giant Johnson & Johnson has been accused of bribing Greek officials to win business contracts.


According to UK’s The Times¸ it is believed to be the first time the country’s Serious Fraud Office (SFO) has charged a British national with paying a bribe to someone outside the country.


The accused Robert John Dougall, 44, is a former vice-president of DePuy International – a Johnson & Johnson subsidiary based in Leeds. He appeared at a City of Westminster Magistrates’ Court charged with one count of conspiracy to corrupt.


The SFO said between February 2002 and December 2005, Dougall made corrupt payments to medical professionals working in the Greek public healthcare system. The bribes were made to win a contract for the sale of orthopaedic products.


The case originated from an investigation of healthcare companies by the US Department of Justice. The SFO did not further elaborate on the case. Dougall was released on bail, and the case has been adjourned until February 3.


Johnson & Johnson disclosed two years ago that some of its foreign subsidiaries may have made improper payments over of the course of the sale of medical equipment.


Original Article: [link] and [link]

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