The Justice Department said Friday: “As admitted in the deferred prosecution agreement signed today, Herbalife has approved extensive and systematic corrupt payments to Chinese government officials over a 10-year period to promote and develop Herbalife`s business in China.” Herbalife has entered into a deferred prosecution agreement with the Fraud Division of the Criminal Division and the U.S. Attorney`s Office for the Southern District of New York in connection with criminal information filed today in the Southern District of New York accusing Herbalife of conspiracy to violate FCPA regulations on books and records. “As admitted in the deferred prosecution agreement signed today, Herbalife has approved extensive and systematic corrupt payments to Chinese government officials over a 10-year period to promote and expand Herbalife`s business in China,” Acting U.S. Attorney Audrey Strauss of the Southern District of New York said in a press release. “. This case signifies the office`s commitment to ensuring that companies operating in the United States do not gain an unfair advantage through bribery and illegal bribery of foreign officials. If Herbalife complies with the CCA during its three-year term, the deferred charges against the company would be dismissed with prejudice. Audrey Strauss, Acting U.S. Attorney General for the Southern District of New York (“SDNY”), and Brian C.
Rabbitt of the U.S. Department of Justice (“DOJ”) Criminal Division today announced the filing of criminal charges against HERBALIFE NUTRITION, LTD. (“HERBALIFE”), a Los Angeles-based multinational corporation known for conspiracy to violate the book and record-keeping provisions of the Foreign Corrupt Practices Act (“FCPA”). The charges stem from HERBALIFE`s decades-long plan to falsify books and records and grant corrupt payments and benefits to Chinese government officials in order to maintain, maintain and expand HERBALIFE`s business in China. As part of the charges filed, SDNY and the DEPARTMENT of Justice entered into a deferred prosecution agreement (“DPA”) with HERBALIFE. According to the DPA, HERBALIFE has admitted to participating in the accused conspiracy and will pay a fine of $55,743,093. Under the terms of the agreement, Herbalife has agreed to continue to cooperate with the U.S. government in any ongoing or future criminal investigation of Herbalife, its officers, employees, or agents. In addition, herbalife agreed under the agreement to improve its compliance program and report to the government on the implementation of its expanded compliance program. The company will pay the SEC more than $67 million in collection and interest.
In a parallel lawsuit, the U.S. Department of Justice (DoJ) and the U.S. Attorney`s Office for the Southern District of New York said Herbalife would pay a fine of more than $55 million. As part of this lawsuit, Herbalife entered into a three-year deferred prosecution agreement (DPA) with the DoJ. Herbalife Nutrition Ltd has entered into a deferred prosecution agreement to resolve allegations by the U.S. government that it granted corrupt payments and benefits to Chinese officials, including government agencies and the media, to boost its operations in China, a federal prosecutor said Friday. Herbalife announced in May that it had set aside an accumulated liability of $123 million as part of the investigations, which focused on violations of FCPA provisions in China for books and records and internal accounting controls. As part of its settlement with the Department of Justice, Herbalife admitted the charges and entered into a deferred prosecution agreement (DPA) for a period of three years. This case is being handled by the Agency`s Securities and Commodities Fraud Working Group and the FCPA Unit of the Fraud Division of the DOJ Criminal Division. U.S. assistant prosecutors Joshua A.
Naftalis and Scott A. Hartman, as well as attorney Jason Manning of the FCPA unit, are responsible for the charge. Unauthorized attempts to upload information and/or modify information on any part of this website are strictly prohibited and subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see 18 U.S.C. § 1001 and 1030). As part of the Justice Department`s enforcement action, Herbalife paid a fine of $55.7 million and entered into a three-year deferred prosecution agreement. .