Title Title
Johnson & Johnson, Philips' healthcare operations accused of operating illegal cartel  Johnson & Johnson, Philips' healthcare operations, accused of operating illegal cartel
Summary Summary
Multinational healthcare companies in Brazil are alleged to have conspired to fix prices of medical devices, from 1996 till 2017 Multinational healthcare companies in Brazil are alleged to have conspired to fix prices of medical devices, from 1996 till 2017
Highlights Highlights
Content Content
<strong>Subsidiaries of multinational companies <a href="https://en.wikipedia.org/wiki/Johnson_%26_Johnson">Johnson &amp; Johnson</a> and <a href="https://en.wikipedia.org/wiki/Philips">Philips</a> in Brazil <a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF">have been accused of operating a cartel</a> to manipulate the prices of healthcare equipment in the country. The cartel, prosecutors allege, operated for nearly 20 years, from 1996 until 2017.</strong> <strong>Subsidiaries of multinational companies <a href="https://en.wikipedia.org/wiki/Johnson_%26_Johnson">Johnson &amp; Johnson</a> and <a href="https://en.wikipedia.org/wiki/Philips">Philips</a> in Brazil <a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF">have been accused of operating a cartel</a> to manipulate the prices of healthcare equipment in the country. The cartel, prosecutors allege, operated for nearly 20 years, from 1996 until 2017.</strong>
The head of <a href="https://en.wikipedia.org/wiki/General_Electric">General Electric</a> in Brazil has also been detained. The head of <a href="https://en.wikipedia.org/wiki/General_Electric">General Electric</a> in Brazil has also been detained.
The cartel has been nicknamed the "international auctions club", and is alleged to contain at least 33 organizations lead by Brazilian medical instrument distributors <a href="https://www.bloomberg.com/profiles/companies/6172039Z:BZ-oscar-iskin-&amp;-cia-ltda">Oscar Iskin &amp; Cia Ltda</a>. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>) The cartel has been nicknamed the "international auctions club", and is alleged to contain at least 33 organizations lead by Brazilian medical instrument distributors <a href="https://www.bloomberg.com/profiles/companies/6172039Z:BZ-oscar-iskin-&amp;-cia-ltda">Oscar Iskin &amp; Cia Ltda</a>. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>)
"Top executives from multinational medical equipment manufacturers arranged among themselves who would win contracts by paying a 13 percent commission on those contracts to Iskin," alleged the Rio de Janeiro prosecutor’s office statement. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>) "Top executives from multinational medical equipment manufacturers arranged among themselves who would win contracts by paying a 13 percent commission on those contracts to Iskin," alleged the Rio de Janeiro prosecutor’s office statement. (<a href="https://www.yahoo.com/news/ges-latin-american-ceo-21-others-arrested-brazil-205633648.html"><em>AFP</em></a>)
On July 5, police executed arrest warrants for the current CEO of General Electric Latin America, Daurio Speranzini Jr., and 22 other suspects. Speranzini's arrest related to his time employed at Philips Medical Systems, prior to taking the position at GE; prosecutors have not stated that General Electric is a target of the anti-corruption probe. On July 5, police executed arrest warrants for the current CEO of General Electric Latin America, Daurio Speranzini Jr., and 22 other suspects. Speranzini's arrest related to his time employed at Philips Medical Systems, prior to taking the position at GE; prosecutors have not stated that General Electric is a target of the anti-corruption probe.
However, the Brazilian headquarters of Johnson &amp; Johnson and Philips along with 42 other sites were raided as part of the investigation, according to police. (<a href="https://www.wsj.com/articles/brazilian-police-search-philips-offices-1530744553"><em>Wall Street Journal</em></a>) However, the Brazilian headquarters of Johnson &amp; Johnson and Philips along with 42 other sites were raided as part of the investigation, according to police. (<a href="https://www.wsj.com/articles/brazilian-police-search-philips-offices-1530744553"><em>Wall Street Journal</em></a>)
Johnson &amp; Johnson, and Koninklijke Philips N.V. have both released statements stating they are cooperating fully with authorities. (<a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF"><em>Reuters</em></a>) Johnson &amp; Johnson, and Koninklijke Philips N.V. have both released statements stating they are cooperating fully with authorities. (<a href="https://www.reuters.com/article/us-brazil-fraud/brazil-police-arrest-ge-latin-america-head-21-others-in-probe-idUSKBN1JU2DF"><em>Reuters</em></a>)
Categories Categories
Brazil, Business, Corruption, Health, Justice, Latin America, Law, Brazil Brazil, Business, Corruption, Health, Justice, Latin America, Law, Brazil
Article type Article type
emerging emerging
Tags Tags
Brazil, corruption, Crime, GE, healthcare, Johnson &amp; Johnson, Philips Brazil, corruption, Crime, GE, healthcare, Johnson &amp; Johnson, Philips
Author byline Author byline
Yes Yes
Has hero Has hero
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full full
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Sources Sources

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