Late last week, the SEC announced an FCPA enforcement action involving the California-based entity SciClone Pharmaceuticals, Inc. (SCI). SciClone was assessed a penalty of $2.5M, profit disgorgement of $9.42M and prejudgment interest of $900K for a total penalty of $12.8M, all to settle SEC charges that a Chinese subsidiary of SciClone, SciClone Pharmaceuticals International Ltd., it violated the Foreign Corrupt Practices Act. At issue were charges that SciClone employees in China pumped up sales for five years by making improper payments to professionals employed at state health institutions.
