Novo Nordisk A/S, a Danish company (“Novo”), entered into a Deferred Prosecution Agreement with the Department and agreed to pay a $9,000,000 fine for making illegal kickbacks to the former Iraqi government in connection with the U.N. Oil-for-Food program.42 The Information charged Novo with one count each of conspiracy to commit wire fraud and to violate the books and records provisions of the FCPA.43 On the same day, Novo settled related charges filed by the SEC under the books and records and internal controls provisions of the FCPA.44 In connection with the SEC settlement, Novo agreed to pay $3,025,066 in civil penalties and $6,005,079 in disgorgement of profits and pre-judgment interest.
The Information alleged that between 2001 and 2003, Novo, an international manufacturer of insulin, medicines and other pharmaceutical supplies, paid approximately $1,400,000 to the former Iraqi government by inflating the price of contracts by 10% before submitting the contracts to the United Nations for approval. These payments were made in order to obtain contracts from the Iraqi ministry of health to provide it insulin and other medicines. The kickbacks were concealed from the United Nations and inaccurately recorded as “commissions” in Novo’s books and records.
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