Johnson & Johnson was fined $70 million by the United States authorities on Friday due to bribing doctors in Europe as well as paying kickbacks for the contract from United Nation’s relief program in Iraq.
Since 1998, the giant company for cosmetics and drugs was paying the doctors and administrators in the country of Greece, Romania and Poland in exchange for the promotion of their drugs and as well as the company’s medical devices. Reports have been said by the Department of Justice and Securities and Exchange Commission.
Between the years 2000 and 2003, a time when Iraq was still under the leadership of Saddam Hussein, there had been reports that Johnson & Johnson had also been paying kickbacks for the contracts under UN Oil for Food Program. There were 19 contracts counted to be paid by the said company.
By market capitalization, Johnson & Johnson is considered to be the 15th largest company in the United States.
To settle the charges, an agreement was set that Johnson & Johnson committed to pay $70 million to the authorities of the US. That includes the $48.6 million plus $21.4 million for SEC and Justice Department respectively.
Investigation were conducted as Mythili Raman, the US prosecutor reported that the said company for cosmetics and drugs “cooperated extensively”.
According to the director for SEC enforcement named Robert Khuzami, any competitive advantage that is gained through an act of corruption is a mirage.
Khuzami added that “J&J chose profit margins over compliance with the law by acquiring a private company for the purpose of paying bribes, and using sham contracts, offshore companies, and slush funds to cover its tracks.”
According to SEC, another resolution is expected for J&J due to a related investigation conducted by Britain’s Serious Fraud Office.
