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Enforcement Action Dataset

 

Initiation Date:    09/28/2017  Information

Prosecuting Agency:    U.S. Securities and Exchange Commission

Type of Action:    SEC Administrative Proceeding

Docket or Case Number:    3-18228

Name of Prosecuting Attorneys:    Unknown

US Assisting Agencies:   

  • U.S. Department of Justice
  • Public Company Accounting Oversight Board (Nonprofit)

Foreign Enforcement Action/Investigation:    Unknown

Foreign Assistance:    Unknown

Origin of the Proceeding:    Unknown

Whistleblower:    Unknown

Case Status:    Resolved


Summary  Information

Alere Inc. was a U.S. corporation that manufactured medical diagnostic testing equipment. The company's common stock was registered with the SEC and traded on the New York Stock Exchange under the symbol “ALR.”

Alere Colombia S.A. was a wholly-owned Colombian subsidiary of Alere formerly known as BioSystems, S.A. Alere Colombia sold Alere’s products in the Colombian market. Biosystems was an independent distributor of Alere products until acquired by Alere.

Alere Medical Private Ltd. (“Alere India”) was a wholly-owned Indian subsidiary of Alere. Alere India sold Alere’s products in India.

According to the cease and desist order, between 2011 and 2016, Alere committed various accounting violations, including mischaracterizing in Alere’s books and records payments made to government officials by Alere Colombia and Alere India. In Colombia, Alere Colombia made payments of approximately $275,000 over the course of several years to a management-level employee at an entity involved in Colombia's healthcare system. In 2011, the government assumed control of the entity, and the entity's employees became foreign officials under the FCPA. In all, Alere sold approximately $7.6 million worth of products to the entity, on which the company made profits of approximately $3.18 million. In India, Alere India paid its India distributor an increased commission intended for local government officials in order to increase the sales of its products there by 400%. Alere retained approximately $150,000 in profits from the increased contracts even after new management discovered the commissions and ended the practice.

On September 28, 2017, the SEC instituted an administrative proceeding against Alere alleging violations of the books and records and internal controls provisions of the FCPA as well as several other securities and accounting violations. Under the terms of the proceeding, the SEC ordered Alere to cease and desist violations of the FCPA and other securities provisions and further ordered the company to pay a civil penalty of $9.2 million, disgorgement of $3,328,689, and prejudgment interest of $495,196

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