The Chinese pharmaceutical market is one of the fastest growing drug markets in the world. To capitalize on this fast growing market several drug companies are offering illegal bribes and other incentives to Chinese doctors in order to increase drug sales in China. These illegal bribery schemes include paying Chinese doctors and Chinese health officials with gift cards, illegal trips, and slush funds to prescribe specific drugs and influence treatment guidelines.
Some of these bribery schemes are extremely complicated and involve systematic gifts given to doctors through accounting fraud and marketing fraud. Such marketing schemes are illegal under Chinese law and can be the basis for large SEC Bounty Action Rewards.
Jason Coomer, who heads a law firm in Austin, Texas, has a Chinese language website offering assistance to whistleblowers. His office and his co-counsel have received around 50 whistleblower reports from China in the last three years and are now taking eight cases forward to the SEC.
We're talking large multinational corporations with multi-billion dollar contracts each year. The whistleblowers are insiders at the corporations as well as doctors who have witnessed elaborate bribery schemes, he told Reuters in on telephone interview from Texas. He declined to give further details about the cases.