SEC Issues $4.5 Million Whistleblower Award
May 30, 2019 at 12:10 a.m.
By Staff Report-
The SEC announced the award Friday. The company or the whistleblower were not identified by the SEC.
Lawyers representing the tipster identified the subsidiary’s parent company as Zimmer Biomet Holdings Inc., which in 2017 settled investigations by the SEC and the U.S. Department of Justice into alleged violations of the U.S. Foreign Corrupt Practices Act, the WSJ reported.
The whistleblower notified the SEC about an alleged kickback scheme in Brazil.
Chad Phipps, general counsel of Zimmer Biomet, told the WSJ said in an email Friday that the company doesn’t comment on legal matters.
Zimmer Biomet in January 2017 paid about $30 million to settle the SEC and Justice Department probes. Those investigations were related to Biomet Inc., according to the SEC. Biomet was bought by Zimmer Holdings in 2015.
In 2013, the former orthopedic surgeon sent an anonymous email to Biomet executives, claiming that the company continued to operate a kickback scheme in Brazil. The tipster later alerted the SEC. Federal authorities acted on the tip.
The 2017 settlement agreement followed an agreement by Biomet in 2012 to pay $22 million to settle an investigation into allegations that Biomet and subsidiaries paid bribes to doctors in Argentina, Brazil and China from 2000 to 2008 to win business, the Wall Street Journal reported.
The SEC announced the award Friday. The company or the whistleblower were not identified by the SEC.
Lawyers representing the tipster identified the subsidiary’s parent company as Zimmer Biomet Holdings Inc., which in 2017 settled investigations by the SEC and the U.S. Department of Justice into alleged violations of the U.S. Foreign Corrupt Practices Act, the WSJ reported.
The whistleblower notified the SEC about an alleged kickback scheme in Brazil.
Chad Phipps, general counsel of Zimmer Biomet, told the WSJ said in an email Friday that the company doesn’t comment on legal matters.
Zimmer Biomet in January 2017 paid about $30 million to settle the SEC and Justice Department probes. Those investigations were related to Biomet Inc., according to the SEC. Biomet was bought by Zimmer Holdings in 2015.
In 2013, the former orthopedic surgeon sent an anonymous email to Biomet executives, claiming that the company continued to operate a kickback scheme in Brazil. The tipster later alerted the SEC. Federal authorities acted on the tip.
The 2017 settlement agreement followed an agreement by Biomet in 2012 to pay $22 million to settle an investigation into allegations that Biomet and subsidiaries paid bribes to doctors in Argentina, Brazil and China from 2000 to 2008 to win business, the Wall Street Journal reported.
Have a news tip? Email [email protected] or Call/Text 360-922-3092