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Eli Lilly Agrees to Pay $29.4 Million to Resolve FCPA Probe - Corruption Currents - WSJ

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Eli Lilly & Co. agreed to pay $29.4 million to resolve allegations raised by the U.S. Securities and Exchange Commission of bribery by overseas affiliates in Russia, Brazil, China and Poland.

The Indianapolis-based pharmaceutical company didn’t admit or deny the allegations in the SEC complaint, which included accusations that its  Russia subsidiary used offshore “marketing agreements” to pay millions to third parties chosen by government customers or distributors despite knowing little to nothing about those third parties.

The third parties rarely provided services, and in some cases were used to funnel money back to government officials to get the subsidiary’s business, the SEC said. Transactions with the third-parties didn’t get enhanced due diligence, and paperwork was accepted at face value with little checking to see whether a transaction suggested the possibility of foreign bribery, the SEC said.