Wade Weems quoted in New York Times Investigation on Corruption within China’s Healthcare Industry
June 17, 2019
Publication: The New York Times
Kobre & Kim’s Wade Weems, who regularly counsels PRC-based corporations and individuals in cross-border bribery investigations, recently spoke to The New York Times in their investigation on issues of corruption within China’s health care industry. Specifically, the Times’s investigation focused on multi-national corporations (MNCs) and the bribery of China’s public hospital officials, as well as other cases where deals involved third-party contractors who paid bribes and requested kickbacks in return.
Mr. Weems spoke on the latter issue of MNCs’ involvement with third-party distributers, saying: “Layering a distributor or vendor in between creates more space and creates the possibility for those vehicles to harbor slush funds or falsify documents along the way and funnel bribes.” However, as the article goes on to point out, the use of a third-party sales force does not shield an MNC from allegations of wrongdoing, with the U.S. Foreign Corrupt Practices Act (FCPA) holding companies responsible for the conduct of lower-level distributors.
Mr. Weems, who is based in Shanghai, focuses his investigations practice on those alleging bribery or FCPA violations, in addition to theft, fraud and money laundering.