DOJ Announces $646 Million Settlement with Olympus Corporation of the Americas.
Date posted: April 6, 2016
The Department of Justice (DOJ) announced that Olympus Corporation of the Americas (OCA) and its Miami-based subsidiary violated the Anti-Kickback Statute (AKS) and the Foreign Corrupt Practices Act (FCPA). OCA is the nation’s largest distributor of endoscopes and related equipment. OCA agreed to pay $646 million to resolve allegations that it obtained new business and sales by giving kickbacks. OCA allegedly bribed doctors and hospitals with foreign travel, consulting fees, grants, lavish meals, and free equipment.
OCA will pay approximately $623 million to resolve AKS violations and an additional $23 million in criminal penalties for violating the FCPA. Further, OCA has executed a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (OIG) and a three-year deferred prosecution agreement to avoid conviction on the criminal charges.
Further, a subsidiary of OCA, Olympus Latin America (OLA), allegedly bribed health care professionals at government-owned facilities across Central and South America to increase medical equipment sales. OLA previously paid $3 million in kickbacks to practitioners that produced more than $7.5 million in profits for the Central and Latin American business.
The CIA between OIG and OCA is available at:
The DOJ Justice News article is available at:
United States Department of Justice. Medical Equipment Company Will Pay $646 Million for Making Illegal Payments to Doctors and Hospitals in United States and Latin America.” Justice News. 1 Mar. 2016.