Syncor International Corporation ("Syncor"), with its headquarters in Woodland Hills, California, was a provider of radiopharmaceutical products and services through various direct and indirect subsidiaries. Syncor Taiwan, Inc. ("Syncor Taiwan"), and Syncor de Mexico, are wholly-owned subsidiaries of Syncor. The Medcon Group was a group of four subsidiaries of Syncor who provided business in Belgium, Luxembourg, and France. Cardinal Health Inc. acquired Syncor in January 2003. The misconduct was discovered during Cardinal Health Inc.'s pre-merger due diligence.
Syncor Taiwan made improper payments to physicians employed by hospitals owned by the legal authorities in Taiwan. The “commissions” were paid between Jan. 1, 1997 and Nov. 6, 2002, for the purpose of obtaining and retaining business from those hospitals and in connection with the purchase and sale of unit dosages of certain radiopharmaceuticals. The payments aggregated to at least $344,110 during the period. They were authorized by the company’s board chairman, while in the Central District of California, and paid in cash in Taiwan via hand-delivered, sealed envelopes. In addition, Syncor Taiwan made payments to physicians employed by hospitals owned by the legal authorities in Taiwan in exchange for their referrals of patients to medial imaging centers owned and operated by the defendant. These improper payments were also authorized by the chairman of the board of Syncor Taiwan, totaling at least $113,007 from Jan. 1, 1998 through Nov. 6, 2002.
During 2001 and 2002, Syncor de Mexico made approximately $23,000 in improper monetary payments to at least four doctors at government-owned hospitals in Mexico, for the purpose of obtaining or retaining business with those doctors and the hospitals that employed them. Syncor de Mexico also made a total of at least $200,000 in support payments, locally referred to as "apoyo" — to doctors with whom it did business, including many employed at government-owned hospitals. The support payments, generally between 1.5% and 3% of sales, mostly came in the form of sponsorships for the doctors' attendance at educational seminars, including payments for registration fees, travel, lodging, and meals. The support payments also included a variety of gifts such a computer equipment, office furniture and medical supplies.
During 2001 and 2002, the Medeon Group made a total of at least $45,000 in illicit payments and gifts to doctors at government-owned hospitals in Belgium, Luxembourg, and France for the purpose of retaining business with these doctors and their hospitals. The Medcon Group would provide computers, digital cameras, expensive wines, wristwatches, leisure travel, and transfer money directly into doctors bank accounts.
On December 12, 2002, the SEC filed a complaint against Syncor, charging the company with violating the anti-bribery, books and records, and internal controls provisions of the FCPA. At the same time, without admitting or denying the SEC's allegations, Syncor consented to the entry of final judgment permanently enjoining the company from future violations of the FCPA. The company was required to pay a $500,000 civil penalty.
In a related action, Syncor consented to the entry of an administrative cease and desist order.
