This is a reward for having an effective compliance program, and essentially immediately turning over evidence of lawlessness, to the feds. It turns out that a single MilliporeSigma salesperson was using his position of trust to divert fraudulently purchased MilliporeSigma chemical products (some useful in the making of deadly narcotics) to others inside and outside the US, who in turn made false statements to agencies of the U.S. Government (claiming the sales were to university labs) but then aided in the export of the same chemical products to China state actors, in violation of US export control laws.
I am highlighting it, as these investigations (where a chemical or life science company DOES NOT quickly cooperate, or worse, has inadequate compliance programs) tend to drag on for years, and the company never really gets a definitive "you're in the clear" letter -- so the reputational black eye can linger into. . . a decade. [I know from first hand VA debarment investigations of decades past. . . just how costly this can be, to selling momentum, globally.] So do take heed, one and all:
. . .We have decided to decline prosecution of this matter based on an assessment of the factors set forth in the NSD Enforcement Policy for Business Organizations and the Principles of Federal Prosecution of Business Organizations, Justice Manual § 9-28.300, including: (1) MilliporeSigma’s timely and voluntary self-disclosure of the misconduct, just a week after retaining outside counsel to conduct an internal investigation and before obtaining a complete understanding of the nature and full extent of the misconduct; (2) MilliporeSigma's exceptional and proactive cooperation, including by disclosing all known relevant facts about the misconduct and the individuals involved and identifying evidence establishing probable cause to search for evidence of the crimes in locations not under MilliporeSigma's control, along with its agreement to continue to cooperate with any ongoing government investigations and any resulting prosecutions; (3) the nature and seriousness of the offense, including that the chemical compounds exported to China through the scheme did not present a significant threat to national security in the quantities and concentrations sold and, in most instances, did not require a license for export; (4) MilliporeSigma's timely and appropriate remediation, including terminating the salesperson who engaged in the scheme and improving its internal controls and compliance program; and (5) the fact that, although MilliporeSigma obtained some revenue from sales to the conspirators, MilliporeSigma was victimized by the conspirators' scheme to fraudulently obtain significantly discounted products and free overnight shipping, which fraud was, under all of the circumstances, the most serious readily provable offense committed by the conspirators.We have further determined that MilliporeSigma did not unlawfully obtain any gains from the offenses for which it is potentially liable, and thus MilliporeSigma is not required to pay any disgorgement, forfeiture, or restitution under the NSD Enforcement Policy for Business Organizations.
Under this letter agreement, MilliporeSigma agrees to continue to fully cooperate with our ongoing investigation, including by continuing to disclose relevant information and by making available for interviews and testimony those officers, employees, or agents who have relevant information, as determined in our sole discretion, and by consenting to our public disclosure of the facts and circumstances of this matter and MilliporeSigma's cooperation. . . .
So, this is a truly novel -- and positive -- development. [Of course, individual employees or others still found culpable may be prosecuted, but the company itslef cannot be.] Now you know -- onward, still grinning. Be excellent to one another.
नमस्ते
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