Nordion (Canada) Inc. was the successor to Nordion Inc, whose common stock was registered with the SEC and traded on the New York Stock Exchange. Nordion, and thereafter Nordion (Canada), was a global health science company that provided medical isotopes and sterilization technologies to pharmaceutical, biotechnology, and other health related companies in more than 60 countries. Nordion (Canada), a privately held company, was created when, on August 6, 2014, Nordion was acquired by Sterigenics International Inc., a sterilization services and portfolio company of GTCR LLC, a private equity firm based in Chicago, Illinois. Following the acquisition, Nordion operated as a standalone company within Sterigenics under the name Nordion (Canada) Inc.
From about 2004 through 2011, Nordion made payments to a third party agent to obtain Russian government approval to distribute TheraSphere, Nordion’s liver cancer treatment, in Russia. Mikhail Gourevitch, an engineer employed by Nordion during the relevant time period, connected Nordion to a Russian business man who was supposedly Gourevitch's childhood friend. Nordion was told that this businessman knew how to navigate the business landscape in Russia. Based on Gourevitch’s recommendation, a department manager at Nordion informally authorized the businessman and his companies (referred to hereinafter as “Agent”) to help Nordion obtain cobalt-60 supply contracts in Russia. In 2004, after the Agent had been able to help Nordion obtain the cobalt-60 medical isotopes in Russia, Nordion expanded its relationship with the Agent to help Nordion obtain government approval for TheraSphere. Gourevitch and the Agent conspired to use some of the funds Nordion paid the Agent to bribe Russian government officials to obtain the approval for TheraSphere. In all, Nordion paid the Agent approximately $235,043 in connection with the approval of TheraSphere. Gourevitch also received at least $100,000 from the Agent for his role in the scheme, which was not disclosed to Nordion. In the end, however, Nordion did not receive approval to distribute TheraSphere in Russia and, thus, earned no profits in connection with its sale in Russia.
On March 3, 2016, the SEC instituted a cease-and-desist administrative proceeding against Nordion (Canada) to which the company agreed without admitting or denying the factual allegations therein. Under the terms of the proceeding, the SEC ordered Nordion (Canada) to cease and desist violations of the books & records and internal controls provisions of the FCPA and to pay a civil monetary fine of $375,000. The SEC based the fine on Nordion's cooperation, self-reporting, and significant remedial measures.
In a separate related administrative proceeding, the SEC ordered Gourevitch to cease and desist violations of the anti-bribery, books & records, and internal controls provisions of the FCPA and to pay disgorgement of $100,000, prejudgment interest of $12,950, and a civil money penalty of $66,000 to the SEC.
