According to a U.S. Securities and Exchange Commission order dated October 24, Stryker’s wholly owned subsidiary in Greece made a “purported ‘donation’ of nearly $200,000 in 2007 to a public university in Greece, to fund a laboratory that was the pet project of a public hospital doctor”.
The doctor agreed to provide business to Stryker, in exchange for the payment. The U.S. company subsequently made $183,000 in illicit profits from the deal.
According to SEC documents, Stryker’s country manager in Greece said of her meeting with the man they were bribing: “Things went well (how couldn’t they – I offered him the amount he is asking for . . .) . My impression is that we will start business again.”
The Michigan-based medical technology company was charged with violating the Foreign Corrupt Practices Act (FCPA). Subsidiaries in Mexico, Poland, Romania, Argentina and Greece bribed doctors, health care professionals and other government-employed officials, as to obtain or retain business.
Stryker made approximately $7.5 million in illicit profits as a result of payments of approximately $2.2 million, which were incorrectly described as legitimate expenses in the company books and records. Stryker agreed to pay more than $13.2 million to settle the case.
Its medical products include implants, surgical equipment and neurotechnology devices. In 2008, approximately 36 per cent of Stryker’s total sales of over $6.7 billion occurred outside the U.S.
The U.S. government has conducted FCPA investigations for the following companies’ activities in Greece: Siemens, Smith & Nephew, Johnson & Johnson (parent company of Depuy Orthopaedics), Smith & Nephew, Alliance One International, Control Components Inc., Comverse Technology, Medtronic and Daimler.