Ex-Fraud Section Prosecutors Spar in Mock FCPA Negotiation
By Mary Jacoby | November 3, 2010 6:02 pm

Just Anti-Corruption was the media partner for the American Conference Institute’s “Government Investigations for Life Sciences” conference in Philadelphia on Sept. 27 and 28. Below we present our video of ACI’s mock negotiation between prosecutors and lawyers for a fictional pharmaceutical company, dubbed Gotham Sciences.

Gary Giampetruzzi, vice president, assistant general counsel and head of government investigations at Pfizer Inc., introduces the scenario, in which the company engaged in off-label marketing of a diabetes drug. The company was also vulnerable to a Foreign Corrupt Practices Act charge after it acquired a medical device maker whose sales agents had made extravagant gifts to doctors at state-owned Russian hospitals.

The panel brings together three Washington, D.C.,-based former colleagues from the U.S. Department of Justice’s Criminal Fraud section: Former chief Steven Tyrrell, now a parter at Weil, Gotshal & Manges LLP; Arnold & Porter LLP’s Kirk Ogrosky, a deputy chief who ran the health care fraud team; and Patton Boggs LLP’s Jay Darden, who was an assistant chief with responsibilities for health care and FCPA prosecutions.

Ogrosky and Jennifer Bragg of Skadden, Arps, Slate, Meagher & Flom LLP play lawyers for the company. Darden and Daniel R. Miller, of counsel at Berger & Montague P.C., play lawyers for the government.

In this excerpt below, Patton’s Darden proposes a misdemeanor plea on the off-label marketing conduct, a deferred prosecution agreement to resolve the potential FCPA violation, and an appropriate fine. To view the entire mock negotiation, click here for Part I; here for Part II, and here for Part III.

WATCH:  The fictional pharmaceutical company faced FCPA and off-label marketing allegations.

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A BREAKTHROUGH IN UNDERSTANDING COMPLIANCE CREDIT. WilmerHale's Kimberly Parker says the U.S. Justice Department's public announcement last month that it would not prosecute investment bank Morgan Stanley on FCPA violations (while securing a guilty plea from an individual "rogue" employee) appears to be an attempt to signal DOJ's standards for compliance programs.

Mary B. Jacoby

Mary Jacoby is the founder of Main Justice and Editor-in-Chief of Just Anti-Corruption.

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