Whistle-Blower Greg Thorpe Speaks Out Against The GSK Department Of Justice (Sham-Fine) ‘Gift’ To GSK…


The Guardian 2014

“…Britain’s Serious Fraud Office has launched a formal criminal investigation into GlaxoSmithKline’s sales practices, piling further pressure on the drugmaker which is already being investigated by Chinese authorities and elsewhere amid allegations of bribery.

Britain’s biggest pharmaceutical company, run by Sir Andrew Witty, said it had been informed on Tuesday that the SFO had “opened a formal criminal investigation into the group’s commercial practices”.

“GSK is committed to operating its business to the highest ethical standards and will continue to cooperate fully with the SFO,” it added. A spokeswoman was unable to give further information. It is understood the SFO is looking at possible patterns across numerous global jurisdictions including China.

The Guardian reported last July that GSK had briefed criminal investigators from the SFO on its activities in China.

Under the 2010 Bribery Act, the SFO has powers to investigate and prosecute corruption at home or abroad. In some circumstances companies can be considered for immunity from prosecution if they can demonstrate they have been proactive and alerted SFO investigators to evidence of wrongdoing as soon as they found it…”


Following on from my post two days ago (about Erika Kelton-Whistle-Blower attorneys’- article on GSK CEO Andrew Witty in Forbes online), GSK whistleblower Greg Thorpe left some interesting comments on it. (see here)

I have long thought that GSK’s 3 Billion dollar fine gave merely the appearance of justice-to the media and the public- but didn’t really deliver it at all. The only ones that really benefited from this 3 Billion dollar fine were the many attorneys involved and GSK themselves. Patients did not get justice, many people were harmed and some died. There was no real justice for those harmed.

On the surface of it, it seems like a lot of money, and a big fine, but 3 Billion is nothing to GSK, it’s around 3 months profit, and in any case- the profits that they made -pushing the various drugs detailed in Greg’s complaint off label- over the decade that the case was (unethically) sealed-and the years previous (to when Greg raised the alarm) more than made up for the criminal behavior that GSK were fined for anyhow.

As Greg so perfectly put it- this fine was a ‘gift’ to GSK.

Disturbingly also, GSK were then fined 2 years later (500 million) in the biggest corporate bribery scandal in China. It seems that GSK broke its corporate integrity agreement (one of the main stipulations for GSK’s fine with the US department of Justice) literally less than 2 years after it signed it. Was GSK setting up this bribery network during the time it was signing this corporate integrity agreement with the US department of Justice? Who was overseeing the funding of GSK’s elaborate bribery scam? that’s something that journalists and the media should be researching to find out…

GSK are also under investigation by the serious fraud office in the UK.

Personally, I don’t think that GSK will be brought to justice in the UK, or the US, for any of this extremely unethical and immoral behavior. GSK operate above the law because they are a cash cow for the UK economy; they are hugely influential over politics, healthcare, universities, and the media- globally. They are an unimaginably profitable company, and their stranglehold upon powerful people, and organizations around the world (from political sway to university/academic control),  stretching back about a century, keeps them protected from facing justice for any of the crimes that they commit.

GSK epitomize an evil, untouchable, unaccountable corporate entity that has influence and power beyond our imaginations. They get away with corporate fraud, bribery, harm to patients (and often corporate manslaughter of patients) because the governments and justice systems (particularly, in the UK, Europe and US) are nefariously influenced by GSK’s huge financial, legal and corporate power. They have every facet of society in their pocket…

Like big oil and the military industrial complex, the big banks etc, Big Pharma’s like GSK are literally untouchable. From time to time they face paltry, meaningless, fines, such as the department of Justice charade- however their corporate culture remains the same.

They hire people like Andrew Witty to become the face of their new branding strategy, but they never ever atone for many of the crimes that they commit.

At the end of the day, it’s all about money and greed…

In this corporate dominated world, the individual is considered value-less and disposable..

The average joe, on the street; the ordinary consumer or patient- has little or no power, to fight these kinds of corporations. If big oil destroys the environment, it doesn’t have to face any real justice, if the military industrial complex wants to fund wars in the middle east, leading to deaths of innocent people in those areas, maiming and dismembering kids and women, and men- it’s allowed to, and if Big Pharma wants to sell a dodgy drug to you, and lie about side effects, and even kill you and get away with it, it’s allowed to do this without proper recourse.

The CEO’s of these entities, are so rich, and well protected by the high political, legal and professional class, that they can simply do what they please, and at the end of their tenure, they can ride off into the sunset with multi-million pound nest eggs and golden parachutes. It doesn’t matter what the corporation does while the CEO is in charge, even if the company commits fraud continually, and pushes drugs off-label to people harming them and sometimes killing them- the CEO’s are let off the hook…

They are untouchable…

We are at their mercy, and they have no mercy..

They behave sociopathically because that’s the nature of how they do business. Despite protestations of new ethical branding, they are unable to change because the corporate environment in which they thrive doesn’t allow for humane characteristics.

If GSK think that I am wrong about anything that I have written on my blog, I am open to amending any blog post to set the record straight, and furthermore I would be happy to discuss any of the issues raised on this blog with Andrew Witty, the CEO, of GSK anytime and anyplace (as long as its recorded and released to the public) so there you go Andrew, take me up on that offer anytime you wish- and show the world that GSK are really concerned with ‘patients first’ and ‘transparency’ – prove to the world that you’re not the corporate lackey that we all think you are…

(I won’t hold my breath)

Anyhow, here’s Greg’s comments– make of them what you will…

Erika Kelton and her so called whistleblowers are frauds, period.

Kelton told me specifically in a letter that “Off label marketing is not fraud”.

Her firm would not take this case until they found out I was right.
Both her me too whistleblowers were terminated GSK employees and Matt Burke was terminated for off label promotion as a Regional Manager, forcing some 200 plus representatives under him to do the same.

This was AFTER I went to the highest ranking people in the company, complaining of off label fraud and kickbacks.

These clones of me used much of the same information I sent Kelton…only to file a separate case about 4 months AFTER I had to get some rookie counsel to represent me.

Her version of the story and their statements are not only false and misleading but probably defamatory to my position on the case. The Department of Justice gave ME standing as first to file and my attorneys handled the award.
The award was decreased to the minimum largely because her “me too” terminated clients were actually deemed ” planners and initiators ” of the Fraud.

This was a 9 year joke, and that is the time it took the DOJ to decimate my complaint and reduce it from some 350 pages with 750 exhibits to some 80 pages or so of a huge quid pro quo to GSK.

I have a lot more to say on this and it was largely Kelton and her boys inaction and lack of substance on the major drugs…Paxil, Imitrex, Zyban and Wellbutrin that the settlement was so paltry.

The settlement amounted to 3 months of PROFIT for GSK. It makes me sick, and Kelton declares victory ? I call bullshit.

Criminal actions no doubt occurred over these 9 years including an illegal seal from the public on the case….9 years !! Sara Bloom, Kelton’s buddy was lead investigator and seemingly spearheaded the Gift to GSK.
I have questions as to the role of Eric Holder also in this whole charade.

A GSK defense attorney became Attorney General 5 years into the case. He supposedly recused himself, but there are indications he had his moles in the DOJ putting the clamps on any criminal indictment…let alone the insanely low penalty. Hundreds of thousands of patients were killed or suffered…nothing done. A slap on the wrist. Holder is now back at the same law firm, DEFENDING GSK. Anyone smell the RAT ?

I have a lot more intimate knowledge about all of this…and have already been threatened for coming forward.

I was the ONLY whistle-blower who was wrongfully terminated for coming forward.
So Erika until you can stop lying and putting lipstick on this pig of a case…that cost the taxpayers Tens… if not hundreds of millions of dollars…
I suggest you keep your mouth shut and comply with my request to show how you really handled the information I first gave to you…when you would not file, and declared in writing that “OFF LABEL DETAILING IS NOT FRAUD”…. It certainly is, especially when people die because of statements made to physicians, even by your own so-called whistle blowers

To Forbes …..

If you want the truth about this whole incredible 9 year quid pro quo….I will give you the truth, and not in some self serving article put forth to generate business for a lawfirm.

The article makes me want to puke. You will get the whole truth from me, not just what some me-too attorney wants you to believe.

Truth man, why don’t you publish the letter to me from Kelton ? Says it all on her integrity and real role in the case on the “killer” off label promotion…not some innocuous promotion on Advair for mild asthma, which in most cases helped patients….which she lays claim to…..having nothing on Imitrex, Paxil, or Avandia.

The really harmful drugs. A useless pawn, and I have the evidence, including HOW she got into the case, and it was not because of the DOJ at all initially.

Get real Erica, you can’t hide the real truth on this Government Fraud forever. That is the bottom line.

The truth will come out, and not in a few paragraphs here…sooner or later.
Greg Thorpe

One other note, Kelton insists that GSK listen to internal whistleblowers.
Certainly I agree…however this is coming from an attorney and a lawfirm who would not listen to the only internal whistle-blower in the 3 Billion dollar gift.
Maybe Erica should take a little of her own advice..instead of only listening to terminated employees, planners and initiators of the Fraud, then claiming THEY
were the leading whistleblowers.


They both secured good jobs outside the company and lived the good life for ten years….while I went through hell for reporting while employed, then was subject to wrongful termination after almost 25 years with the company.

Really Erika…you can fool some of the people some of the time..as the saying goes.

Matt Burke, your main bread and butter, as you know… would not even put his name on the complaint until I forced him to do so, or hit the road. Some hero ?

Come clean, seriously…it is about more than generating business for your firm through false and misleading statements. Bottom line you and your clients only got in the way in this case, especially in settlement discussions. The truth hurts, huh ? If I am wrong Burke can reply….but he will not.

He was grossly unjustly enriched and could be in prison, instead of living the good life off of my initial complaints.

Greg Thorpe

The GlaxoSmithKline-Yemen (Whistle-Blower) Bribery Files



Post has been suspended following new information -it will be amended shortly.. and posted again.

stay tuned…

 

 

Who Will Replace His Royal-Ness Andrew Witty At GSK?


It seems to be that GSK just replace one sociopath with another..

I can just imagine the interview process for CEO…

We’ve had JP Garnier (he was a very good sociopath), then we had Witty (who was arguably even better).. very convincing , very slick…

Who next?

I bet it’s something like a tick the boxes ‘sociopath’ checklist for the selected candidates…

Something like this perhaps?…


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http://news.sky.com/story/1661575/woodford-demands-outsider-to-take-gsk-helm

Woodford Demands Outsider To Take GSK Helm

The high-profile fund manager tells Sky News a “fresh pair of eyes” is needed to replace Sir Andrew Witty at GSK.

10:58, UK, Thursday 17 March 2016

GlaxoSmithKline Chief Executive Andrew Witty poses with his medal after being honoured with a Knighthood by Prince Charles

Sir Andrew Witty poses after being honoured with a knighthood

Britain’s biggest drugs-maker, GlaxoSmithKline (GSK), has been told to ignore internal candidates in its search for a new boss as shareholders intensify demands for a radical overhaul of the company.

Speaking exclusively to Sky News, Neil Woodford, the City’ s best-known fund manager, said that GSK needed “a fresh pair of eyes” to replace Sir Andrew Witty, who will step down next year.

“I have a strong preference for an external candidate,” the head of investments at Woodford Investment Management said on Thursday.

Mr Woodford’s demands will put pressure on Sir Philip Hampton, GSK’s new chairman, to appoint an executive from elsewhere in the pharmaceuticals industry to succeed Sir Andrew.

That would come as a blow to possible internal candidates such as Emma Walmsley, who runs GSK’s consumer products division, and Abbas Hussain, president of its global pharmaceuticals unit.

Sky News revealed last autumn that Mr Woodford was seeking a break-up of the £69bn company, which owns brands such as Nicorette and Horlicks.

He believes the group would be far more valuable if it separated its HIV business ViiV, its consumer healthcare division and Stiefel, its dermatology division, from its core medicines and vaccines arm.

GSK said on Thursday that Sir Andrew would step down at the end of March 2017, with a formal recruitment process now underway.

The City has grown frustrated at GSK’s lacklustre share price performance, with the stock down about 10% over the last 12 months as investors wait to see whether a pipeline of promising new products will deliver.

Under Sir Andrew, its chief executive since 2008, GSK has signalled a shift away from highly priced prescription drugs in favour of vaccines and consumer products.

Analysts at Deutsche Bank said the announcement about Sir Andrew’s retirement was unlikely to signal material strategic changes at GSK.



http://www.bloomberg.com/news/articles/2016-03-17/glaxo-chief-executive-witty-plans-to-step-down-next-year

GlaxoSmithKline CEO Andrew Witty to Retire in March 2017
Marthe Fourcade
Ketaki Gokhale
KetakiGokhale
March 17, 2016 — 7:12 AM GMT
Updated on March 17, 2016 — 12:10 PM GMT

Board will search for CEO candidate inside, outside drugmaker
Chairman Hampton also plans `board refreshment’ this year

GlaxoSmithKline Plc Chairman Phil Hampton began an overhaul of the biggest U.K. drugmaker by launching a search for Chief Executive Officer Andrew Witty’s successor and replacing a third of the board as he seeks to pacify some disgruntled investors.

Witty, 51, will retire next March, after almost a decade at the helm, the London-based company said in a statement on Thursday. Glaxo also plans what Hampton termed a “board refreshment” as directors Deryck Maughan, Stephanie Burns, Daniel Podolsky and Hans Wijers won’t stand for re-election at the annual meeting in May.

Andrew Witty
Andrew Witty
Photographer: Simon Dawson/Bloomberg

Witty, once hailed as one of the pharmaceutical industry’s most visionary managers, has faced criticism for Glaxo’s lagging share performance, sluggish sales and a pipeline lacking promising medicines. A bribery scandal in China that led to a $489 million fine last year also tarnished his image, which he had built with initiatives to develop the world’s first malaria vaccine and reform the way medicines are marketed to doctors.

“Glaxo needs a shakeup at the top,” said Gareth Powell, a portfolio manager at Polar Capital LLP in London whose holdings include Glaxo shares. “There’s a lack of truly innovative products, and that’s what they need to sort out.”
Right Time

Last year, Witty oversaw the biggest reorganization since the merger that created Glaxo 15 years ago. He sold the company’s cancer drugs to Novartis AG in exchange for the Swiss firm’s vaccines business and cash. The companies also formed a joint venture, controlled by Glaxo, to sell consumer health products.

Glaxo shares fell 1.3 percent to 1,394 pence at 12:07 p.m. in London trading. The stock has returned an average of 10 percent a year over the past five years, compared with a 17 percent average annual return for the Bloomberg Europe Pharmaceutical Index.

“By next year, I will have been CEO for nearly ten years and I believe this will be the right time for a new leader to take over,” Witty said in the statement. He began leading Britain’s largest drugmaker in 2008 after more than 20 years at the company, including postings in the U.S., Asia and Africa.
Avoiding Deals

Both internal and external candidates will be considered for the role. Glaxo investor Neil Woodford said he would like to see someone from outside the company take the top job. One of that person’s first tasks may be to slash the dividend, investors said.

Potential candidates include Emma Walmsley, head of Glaxo’s consumer-health division, and Abbas Hussain, president of its drug business, according to reports in U.K. media. Chief Financial Officer Simon Dingemans and Roger Connor, who oversees global manufacturing and supplies, may also be considered as internal successors. David Epstein, head of Novartis’s pharmaceutical unit, may also be approached, the reports said.

Witty’s views have diverged from those of his peers. He has avoided large-scale acquisitions that have consumed others such as Pfizer Inc. and Teva Pharmaceutical Industries Ltd. And in 2011, he started a program called Patient First that eliminated the link between sales targets and bonuses for Glaxo’s U.S. marketing team, following allegations of illegally promoting drugs. Few drugmakers followed his lead.
Fresh Board

Glaxo’s sales declined to 23.9 billion pounds ($34.2 billion) last year from a peak of 28.4 billion pounds the year after Witty joined. Core earnings per share will probably surge this year, the company has said, after two years of declines.

“The decision will allow him to step aside at a high point following the company’s expected return to double-digit earnings growth in 2016,” Richard Parkes, an analyst at Deutsche Bank AG in London, wrote in a note to clients.

One bright spot has been Glaxo’s portfolio of HIV medicines, which the company considered spinning off in an IPO before opting to keep it. The British drugmaker also has one of the broadest drug pipelines in the industry, with more than 70 new medicines in development (though many are early-stage drugs that won’t deliver sales anytime soon), according to a Bloomberg Intelligence pipeline analysis.

A breakup of the company, favored by some investors including Woodford, might not generate that much value, according to an analysis by Bloomberg Intelligence analyst Sam Fazeli. Separating the drugs, vaccines and consumer-health units will probably increase Glaxo’s enterprise value of 83 billion pounds ($118 billion) by 10 percent or less, he estimated.

GSK : Living Up To Their Reputation As The Most Corrupt Company In The World


July 16, 2014 10:00 pm

GSK admits to 2001 China bribery scandal

GlaxoSmithKline faces further scrutiny from US prosecutors after it emerged that staff were caught bribing Chinese officials more than a decade ago.

The revelation comes as US and UK authorities investigate allegations that GSK employees bribed doctors and officials more recently to boost drug sales in China.

More

On this story

The Financial Times has learnt that GSK also found problems with its China vaccine business in 2001 that led to the firing of about 30 employees.

The US Department of Justice, which is investigating the current allegations, will take a close look at the earlier scandal, said a former senior DoJ official who asked to remain anonymous. If it found a pattern of such behaviour, the justice department was likely to take a tougher stance towards the company, legal experts said.

GSK has been under scrutiny in China since authorities last year accused it of paying up to $500m in bribes. The DoJ is looking at the case as part of a broader probe into drugmakers under the Foreign Corrupt Practices Act.

Two people familiar with the 2001 scandal said GSK found that staff were bribing Chinese officials and taking kickbacks. The company acknowledged the matter for the first time to the Financial Times, but said it had dealt with the issue rigorously.

Timothy Blakely, a partner at the US law firm Morrison & Foerster, said US prosecutors would have to examine the 2001 case under justice department guidelines to see whether there was a pattern of behaviour.

“It is something that a prosecutor would have to take into account,” said Mr Blakely.

GSK asked PwC to investigate the case when the corruption suspicions emerged. “These matters occurred over 12 years ago. We believe appropriate investigation and action was taken at the time,” it said.

One member of the PwC team in 2001 was Peter Humphrey. Now an independent investigator, he is being held in China on charges of illegally buying private information in connection with GSK’s current scandal.

The rapid move to hire PwC in 2001 contrasts with the response to the current scandal. After a whistleblower made allegations against the company last year, GSK first relied on an internal probe with external legal and auditor support. That inquiry found no evidence of systemic corruption, although some staff were dismissed for expenses irregularities.

GSK has since hired Ropes & Gray, a US law firm, to conduct an external inquiry. In May, Chinese police said they had evidence of “massive and systemic bribery”.

“We have zero tolerance for unethical behaviour,” GSK said. “We investigate any allegations put to us and take action where necessary.”

The earlier scandal came the year after GSK was formed via a merger of Glaxo Wellcome and SmithKlineBeecham. In late 2001, Paul Carter, GSK’s new China head, asked PwC to investigate after suspicions of corruption emerged, including the fact that two staff had been detained in China without him being told.

PwC confirmed the suspicions, and Mr Carter fired the Chinese head of vaccine sales in China. Mr Carter left GSK in 2005 long before the current problems emerged. He declined to comment.

Chris Baron, the general manager for the vaccines unit in 2001, denied knowledge of the bribery at the time. He was suspended and, soon after, left the company.

Mr Baron said PwC concluded he had “no personal involvement or knowledge” related to the bribery. But he said “there was some debate as to whether I may have been insufficiently diligent to spot the matter earlier”.

At the time of the 2001 incident, Sir Andrew Witty, GSK chief executive, was the company’s head of Asia-Pacific, but his responsibilities excluded China. GSK said Sir Andrew “was not involved in and was not aware of” the case at the time.

Sir Andrew has tried to cast GSK as a leader in ethical reforms since it was hit with a record $3bn DoJ fine for marketing abuses in 2012. But his clean-up effort, including measures to cut the link between sales volume and pay for marketing personnel, has been overshadowed by the latest scandal in China.

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GSK says faces UK serious fraud investigation


 

GSK says faces UK serious fraud investigation

May 27 (Reuters) – GlaxoSmithKline Plc said on Tuesday that Britain’s Serious Fraud Office (SFO) has opened a formal criminal investigation into its commercial practices.

GSK said in a statement that it would cooperate fully with the SFO and was committed to operating its business to the highest ethical standards.

The statement gave no further details about the investigation. (Reporting by Andy Bruce, editing by David Milliken

GSK China Head Executive Could Face Jail Time Over Bribery Offenses…


 

Pack of corrupt, devious, sociopathic criminals the bloody lot of them… 

 

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http://www.theguardian.com/business/2014/may/14/glaxosmithkline-executive-could-face-prison-china-bribery-charges-gsk?utm_source=twitterfeed&utm_medium=twitter

 

GlaxoSmithKline executive could face prison in China over bribery claims

Mark Reilly, who ran GSK’s operations in country, accused along with two other executives of bribing doctors and hospital officials
Chinese police claim GSK, the UK’s largest pharmaceutical firm, offered billions of yuan in bribes in order to boost sales of its products. Photograph: Jason Lee/Reuters

A British GlaxoSmithKline executive has been accused by Chinese police of running “a massive bribery network”, as the corruption scandal at the pharmaceutical group deepens.

Mark Reilly ran GSK’s operations in China but now risks a jail sentence in the country after he was accused of offences that carry a maximum sentence of life in prison.

Chinese police claimed that that Reilly and two other Chinese executives, Zhang Guowei and Zhao Hongyan, bribed doctors and hospital officials. The bribery allegations, which will now be passed to prosecutors, were harsher than many Chinese-based executives expected, Reuters reported.

The police accused GSK, the UK’s largest pharmaceutical company, of offering billions of yuan in bribes to doctors and other hospital staff in order to boost sales of its products. Although Reilly stood down from running GSK’s China operations last July he remains an employee.

A report by the Chinese state news agency Xinhua highlights the role of the Briton. Zhang, a former vice-president of GSK China, told Xinhua that pressure to increase sales led to the bribery. “When Reilly took over the post the company’s strategy shifted from profit-oriented to sales-oriented. The sales target in China was raised every year to compensate the reduction in US and European markets.”

When lurid allegations of doctors being bribed with £320m worth of extravagant gifts and sexual favours first emerged last year GSK said the investigation was focused on Chinese executives rather than British managers.

GSK declined to comment on the specific allegations against Reilly. But in a statement the company said: “We take the allegations that have been raised very seriously. They are deeply concerning to us and contrary to the values of GSK.

“We want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of China and its citizens.”

Reilly has been working for GSK since 1989, according to his LinkedIn profile. A graduate of University College London, he holds a PhD in pharmacology and an accountancy qualification. He rose up the GSK ranks, doing a variety of commercial jobs that included stints in Singapore, the USA and GSK’s headquarters in London. He took charge of GSK’s operations in China in January 2009, and was based in Shanghai. He left the country last July when the bribery scandal broke. He later returned and was subsequently barred from leaving. Ten days after the scandal broke Reilly was replaced as GSK’s China boss by Herve Gisserot.

Chinese police have not said whether Reilly has been detained, but officials at the British Consulate in Shanghai have said they are in contact with him and providing assistance.

GSK is also embroiled in a similar scandal in Poland after a whistleblower, Jarek Wisniewiski, told the BBC’s Panorama programme that company representatives paid doctors to boost prescriptions. GSK is also investigating bribery allegations in Jordan and Lebanon.

http://www.fcpablog.com/blog/2014/5/14/chinese-police-charge-former-gsk-china-chief-mark-reilly.html

CHINESE POLICE CHARGE FORMER GSK CHINA CHIEF MARK REILLY

Chinese police Wednesday charged the British former boss of GlaxoSmithKline’s China unit and two other company executives with corruption for bribing health officials and doctors.

A Ministry of Public Security official said in Beijing that Mark Reilly (pictured) and two Chinese executives, Zhang Guowei and Zhao Hongyan, offered bribes to hospital personnel and doctors to boost GSK’s sales.

All three defendants face up to life in prison.

In July last year, China authorities accused GSK, the UK’s biggest pharma, of  paying $482 million in bribes. The Ministry of Public Security said that since 2007 GSK had used 700 travel agencies to deliver the illegal payments.

Police then detained four GSK executives, including Zhang, a GSK human resources director, and Zhao, a legal affairs director.

Reilly had left China when the scandal broke but “voluntarily returned to cooperate with police.” Retuers said.

In October, Xinhua reported that Reilly was in China helping with the investigation and hadn’t been detained.

Reuters said it wasn’t able to contact him Wednesday.

A British consulate spokesperson in Shanghai told Reuters “officials were in regular contact with Reilly and were providing consular assistance.”

Xinhua said GSK’s China revenue was $1.1 billion in 2012, nearly double from when Reilly took over in 2009.

*     *     *

In April, GSK said it was investigating allegations the company hired government-employed doctors and pharmacists in Iraq as paid sales reps for its products.

The pharma also said it is investigating allegations of bribery in Jordan and Lebanon.

In Poland, GSK is facing a criminal probe for allegedly bribing doctors between 2010 and 2012. Prosecutors said last month they have evidence of illegal payments to 13 health centers.

Thirteen people have been charged by Poland’s anti-corruption bureau.

_____________

Richard L. Cassin is the Publisher and Editor of the FCPA Blog. He can be contacted here.

– See more at: http://www.fcpablog.com/blog/2014/5/14/chinese-police-charge-former-gsk-china-chief-mark-reilly.html#sthash.HD2gF6xt.dpuf

Forbes Nails Andrew Witty And GSK’s Agenda For What It Is : Utter BS!


It is quite remarkable to see a mainstream corporate news agency like Forbes really nail the problems of GSK and the various ethical/integrity issues that surround Andrew Witty’s tenure as CEO. Great article, and It would be great to see more like it from the mainstream media.

We- the bloggers- have been calling out GSK on their hypocritical corporate bullshit for years now- so it’s good to see some journalists, from the mainstream, are finally catching up. Well done  to Forbes for having the balls to tell it like it is. Kudos. 

http://www.forbes.com/sites/erikakelton/2014/04/28/glaxosmithklines-spin-doctoring-doesnt-cure-corruption-problems/

Erika KeltonErika Kelton Contributor

I write about whistleblower matters involving fraud and other issues.

INVESTING 4/28/2014 @ 5:02PM 1,737 views

GlaxoSmithKline’s Spin Doctoring Doesn’t Cure Corruption Problems

Andrew Witty, GlaxoSmithKline GSK -0.49%’s CEO, has been a busy man over the past couple years, taking every opportunity to convince the public that the company has reformed its culture and marketing practices.

But despite the full-on PR campaign, claims continue to surface about Glaxo using bribes to induce doctors to prescribe Glaxo drugs. Allegations of Glaxo’s bribery in China have hung over the company for nearly a year, and just recently similar concerns have been raised publicly about the company’s marketing practices in Poland, Iraq, Jordan and Lebanon – in all, a list that is becoming as long as an Amazing Race itinerary.

It has been less than two years since Glaxo paid the US government a record-setting $3 billion to settle a range of fraud and bribery allegations, including allegations that it paid kickbacks to doctors to prescribe Glaxo drugs and that it marketed many of its drugs for unapproved uses, making unsubstantiated claims about results. (A number of those allegations were raised by whistleblowers my firm represented.)

Untitled

 

GlaxoSmithKline Chief Executive Officer Andrew Witty said “displaying integrity” is a company priority, but the recent spate of bribery allegations belie those words. 

If the latest allegations are true, Andrew Witty will need to work overtime to dispel the conclusions that Glaxo simply “off-shored” illegal sales tactics first developed in the United States and that the pharma giant continues to foster a culture where bribery and kickbacks are considered standard sales practices.

CEO Witty promised in 2012 that GSK would make “displaying integrity in everything we do” a priority. However, the temptation of rapidly growing markets in Asia, the Middle East and Europe may have proven too difficult to resist. After all, it’s harder to convert “integrity” into rising share prices than it is to boost profits through questionable business practices.

The flood of bribery allegations is a test even for Glaxo’s professional spin doctors who, rather ironically, try to distract the public from bad news on the ethical front by announcing the company’s latest steps to reinvent itself as an ethical business venture.

For example, prior to its November 2011 announcement that the company would pay $3 billion to resolve the U.S. liabilities, Glaxo moved to pre-empt the bad news by announcing it was changing its US sales representatives’ compensation structure so that they would no longer be rewarded based on the volume and value of prescriptions sold. Such incentive-based compensation is considered to encourage illegal practices that drive sales.

But as the latest alleged bribery revelations suggest, limiting those changes to the US sales force left the rest of the world – including Glaxo’s most rapidly growing markets – open to questionable practices encouraged by incentive compensation structures that Glaxo failed to change outside the US.

In 2013, dogged by numerous media stories that it was bribing doctors in China to prescribe its drugs, Glaxo tried to blunt the fallout by belatedly announcing that all of its sales representatives worldwide would be compensated under the same terms as its US sales force, replacing financial incentives based on sales with ones based on the quality of service sales reps provide doctors and other healthcare providers.

Then in March, a top Glaxo official said in a media interview that Glaxo would hire doctors in-house to market its drugs, rather than pay physicians to speak to other doctors about its products. Within just a few weeks, like clockwork, allegations of GSK bribing physicians in Iraq, Jordan, Lebanon and Poland surfaced.

One gets the feeling that Glaxo’s compliance efforts are geared more to pre-empting bad news than they are to making meaningful and effective changes to its business culture.   Glaxo’s piecemeal approach to compliance holds back on clearly needed wholesale changes while the executive suite waits for the next investigation of unethical conduct to crop up.

With Glaxo’s recent history, it is hard to keep a straight face when reading the company’s statement responding to the latest bribery allegations involving Jordan and Lebanon. Glaxo declares: “We are confident in our processes and controls and that we do not have a systemic issue with unethical behavior in GSK.”

If Glaxo truly doesn’t recognize that bribery allegations in multiple countries around the globe add up to a “systemic issue,” then the company has even bigger management problems than it seems. In that case, GSK and Andrew Witty should be prescribed a full dose of reality – with unlimited refills.

 

 

 

 

GSK Corruption and Criminality Has Been Going On For Decades..


 Corruption in China and Iraq, Defective Drugs...
GSK criminality and corruption has been
going on for decades before these 
current scandals..

The following are but a small sample..
...they don't call them the 'Global Serial Killers'
for nothing you know...

http://www.whale.to/v/gsk3.html

GlaxoSmithKline
GlaxoSmithKline

[Satanic is the only word that does justice to this outfit (see Lucifer symbol over Wellcome building, below), one example:  After their Trivirex MMR vaccine was withdrawn as dangerous in Canada, in 1988, they managed to get it on the UK market with a government indemnity, under another name: Pluserix (see MMR timeline).   When that had to be withdrawn they then sold it to the third world (causing an outbreak of meningitis in Brazil), while they have done their best to suppress the fact it caused autism and bowel disease, along with the present MMR vaccines. Sir Nigel Davis, who dismissed the appeal over the removal of funding for the MMR litigation by the Legal Services Commission, was the brother of Lancet proprietor Crispin Davis who at the time had also recently become a non-executive director of Glaxo SmithKline. The Times group (whose CEO is James Murdoch, appointed in 2009 a non executive director with GlaxoSmithKline) through it’s journalist Deer, is leading the attack on Dr Wakefield that culminated in the GMC Kangaroo court.
Of course the big poison in their history is AZT which they are still trying to kill Africans with.  Recently caught suppressing adverse effects with Avandia.  One psychiatric poison is Paxil/Seroxat.  God willing, this one is going to crash and burn on its way down to hell . Sell your shares now.]

Interestingly, this way of covering up the reality of deaths and damage caused by pharmaceutical corporations is becoming more common — In the UK, the case against Dr Andrew Wakefield, the whistleblower in the case of MMR (manufactured in part by GSK), was presented to the public as one of ethics, while the real issue of a damaging vaccine which harmed thousands of children was completely sidelined. If Witty and GKS did learn anything from this case, it was how to get away with culling the population of thousands, this part of their operation went very well but next time they might hope to dodge the fine for undeclared safety data. It makes me sick to my stomach, that while every high school shooting, every soldier killed in a foreign country, every notorious murder is religiously reported by the US media, GSK gets away with killing thousands without a single adverse word. And where are our gallant reporters in all this, whose going to sue them for fraudulent reporting, nothing could be a clearer sign that the media and it’s feather bedded journalists have crossed to the other side of the corporate tracks.
    
Getting away with murder II.(in two parts) Because of clever media manipulation, most people don’t understand what this ‘fine’ involved in the GSK mass murder case. It has been presented to the public as a case of fraud. Every news item makes clear that GSK failed to disclose certain safety data for three drugs which they produced. The penalty for this fraud, however, was only a portion of the overall ‘settlement’, the great majority of it was a straightforward claims settlement for deaths and injury caused to people who took the drugs after they had been licensed on fraudulent safety data (I know only about Avandia, for one of the other drugs see Fiona Hackman’s question below).It’s a little like an automobile company knowingly producing cars with faulty brakes, which ultimately kill thousands of people, being fined for failing to alert industry regulators to an apparent production fault. The reason why all media have reported this settlement as one of fraud is clear, had it been reported as a claims settlement even the most docile of the public would have raised eyebrows, asking the question, ‘How can a company falsify safety data, obtain a license for a drug and watch it kill and maim thousands of people?’ Mr ‘witty’ Witty, the Chief executive of GSK was able to brush off the whole settlement with the aside ‘We’ve learned from our mistakes’, when the sad fact is that it was thousands of others who learned by GSK’s criminality.Martin Walker MA  Martin Walker

“Three months ago we announced a partnership with the Wellcome Trust to invest over £1 billion to re-equip university science in Britain, the largest ever investment in Britain’s science base. Having received an overwhelming response from universities to our new University Challenge Fund we are now inviting further private sector involvement.”—Chancellor’s statement Nov 4, 1998

What is not commonly known is that the developers of the “dye”, Kodak, knew it would cause CIAA before they licensed it (May 1944).Today, there are 80 medical conditions or symptoms that have been recognised as a “cause or effect” of exposure to this “too toxic” chemical dye (NIH, 1994). Many of the drugs now used to treat these secondary conditions or symptoms of CIAA have been developed or patented by those who developed the original formula (for some, with slight changes of said formula; later, for instance, Myodil by GlaxoSmithKline).
    I will go on the record to state the following: the developers of the diagnostic radiographic contrast medium knew before they applied for an NDA (new drug application) that it would cause arachnoiditis, and furthermore were aware of some of the other found reactions to this “dye” that were also not reported to the authorities.
    I will go further and also place on the record that the collection of “secret studies” shows such; however, none was ever submitted to the FDA when applying for the NDA. Copies of all these “secret studies” are held in a bank safe on my behalf; these can be made available to any person who is willing to publicly publish such. [Letter Nexus Dec 2006] Arachnoiditis Awareness

The files containing the licensing history of Myodil have been ‘mislaid’ by the Medicines Control Agency. After pressure from the Myodil Action Group, which fought for an investigation, the Parliamentary Ombudsman recommended a release of the documents. However, the Permanent Secretary to the Health Department refused to release the major part of the Myodil licensing documents.
    On the 19th September 1988 Glaxo notified the Department of Health that Myodil was to be discontinued in the UK for commercial reasons, but they wished to retain the product licence issued in June 1987 as the product was not being discontinued worldwide. Myodil is thus still manufactured and sold overseas – it has found new markets in countries that are vulnerable to the marketing strategy that made Glaxo one of the largest pharmaceutical companies.
    Glaxo has always maintained that the links between Myodil and adhesive arachnoiditis have not been proven. But in an out of court settlement in 1995, whilst denying liability Glaxo Laboratories Limited paid out, on average, £16,000 to each of 425 claimants suffering from Myodil Adhesive Arachnoiditis. A further 3,000 claimants had to withdraw because of what many of them felt to be Glaxo’s solicitors’ bullying tactics. Settling out of court meant that Glaxo effectively closed the door on any further litigation in the UK.[2000] Toxic drugs are good for you (Myodil)

The Daily Telegraph has documentary proof the Federal Government, state health authorities and doctors sanctioned the use of the dye even though they knew the devastating effects of the chemicals in it. ……“You’ve seen the chemical make-up of the substance – it contains benzene, hydrochloric acid and sulphuric acid,” he said. “How could they ever think that injecting those chemicals into somebody’s back would not be harmful?” Doctors were warned not to spill the chemical on rubber because it destroys it and dissolves polystyrene cups. [2002] Medical cover-up

“Dr. Samuel Katz of Duke University  has served as chair of both the ACIP and the Red Book committees. He co-chairs a group called the Vaccine Initiative, which is an information and advocacy group that benefited from start-up funds from at least six vaccine manufacturers. He is listed as an advisory board member to the Immunization Action Coalition (which includes the Coalition for Hepatitis B), an advocacy group that receives funding from several vaccine makers, including SmithKline Beecham, Merck and Wyeth-Lederle……..Dr. Neal Halsey of Johns Hopkins University http://www.vaccinesafety. Like Katz, he is a vaccine pioneer and served on ACIP and the Red Book committees. He, too, is an advisor to the Immunization Action Coalition and the Hepatitis B Coalition. Halsey is also director of the Institute for Vaccine Safety, which he founded at Johns Hopkins to provide a forum on vaccine safety, among other things. According to a Johns Hopkins’ spokesperson, the institute receives funds from Merck, SmithKline Beecham, North American Vaccines, Connaught/Pasteur Merrieux and Wyeth-Lederle.”—-Nicholas Regush ABCNEWS.com

“NCK & GHCWaters pointed out that the confidential study’s lead author, Thomas Verstraeten, has since left the Centers for Disease Control and is now employed by GlaxoSmithKline, a manufacturer of thimerosal containing vaccines for many years that is a defendant in numerous suits pending nationwide.  “We have asked GlaxoSmithKline to provide Mr. Verstraeten’s deposition in order to understand if conflict of interest issues may have played a role in the CDC’s decision to keep this report confidential, and specifically, their failure to reveal it to the Institute of Medicine.”–AUTISM DAILY NEWSLETTER Thursday January 3, 2002

“In the latest annual report for the “Medicines Act 1968 Advisory Bodies”, she (Miller) lists five “non-personal” interests — payments which benefit her department rather than herself personally. They are grants from Baxter Healthcare, Wyeth Lederle Vaccines, Chiron Biocine, and SmithKline Beecham and “CMI testing in adolescent sera”, courtesy of Aventis Pasteur.”–Private Eye

“Professor  David Elliman, whose study said fears of a link between the MMR vaccine and autism were unfounded, admitted that he and Dr Helen Bedford had been given money by drugs giants SmithKline Beecham and Pasteur Merieux Merck Sharp & Dohme. Their report, MMR Vaccine – Worries Are Not Justified, is published in the current issue of the medical journal Archives of Disease in Childhood, and was used by the government to reiterate its view that the vaccine is safe.”–Media  

“Wyeth Lederle had paid Dr. Edwards $255,023 per year from 1996 to 1998 for the study of pneumococcal vaccines (i.e. Prevnar). Edwards is also one of fifteen full-time members of FDA’s Vaccines and Related Biological Products Advisory Committee, the committee that advises the FDA on the licensing of new vaccines……Rennels was instrumental in getting RotaShield to market and is now involved in Prevnar. Her university receives a total of over $2.5 million from various drug and vaccine companies including Wyeth Lederle, Prevnar’s manufacturer. She is also one of the twelve members of the Committee on Infectious Diseases, the committee that makes vaccine recommendations as part of the American Academy of Pediatrics…..This doctor (Dr. Jerome Klein) has been employed by the major vaccine manufacturers to testify against vaccine injured children. He is also chief editor of pneumo.com the website paid for by Wyeth Lederle to sponsor Prevnar. Furthermore, Klein holds a position on the National Vaccine Advisory Committee, the committee that recommends products for universal vaccination.”–Michael Horwin, MA

“A Sunday Express investigation has found that nearly a third of the 181 experts who sit on the Medicines Control Agency (MCA) committees are linked to GlaxoSmithKline, Aventis Pasteur or Merck, Sharpe and Dohme.”–Sunday Express

“Currently, 37 members of the CSM have a total of 188 separate financial links with the pharmaceuticals industry, inc the vacc manufacturers, including 82 separate personal declared links. These include shares, fees, consultancies, research grants and non-executive directorships. Also further 106 non-personal declared links. Source: Neill Committee on Standards in Public Life). Vaccine companies directly linked to members of CSM through personal declared financial links include SmithKline Beecham (NB), Merck Sharpe Dohme (NB), Lilly Industries, Pfizer, Glaxo Wellcome (NB), Bayer, Proctor 7 Gamble, British Biotech, Medeva Pharma. Members with personal financial links with MMR manufacturers are Messrs Blenkinsopp, Dargie, Donaghy, Evans, Forfar, MacGowan, Smyth, Wilkie. (Source: Neill Committee on Standards in Public Life).”–David Thrower Flawed UK Regulatory and Monitoring Systems (2001)

“A Parliamentary Written Question by Mrs. Ann Winterton MP in May 1999 confirmed the following declared interests within the JCVI membership (NB – the PWQ related only to a limited range of pharmaceuticals companies, so the full list will be greater than this): Professor Lewis Ritchie (Glaxo Wellcome), Dr. Barbara Bannister (Glaxo Wellcome and SmithKline Beecham),  Dr. David Goldblatt (SmithKline Beecham), Dr. Diana Walford (Glaxo Wellcome and SmithKline Beecham), Professor Roy Anderson (Glaxo Wellcome and SmithKline Beecham), Dr. Karl Nicholson (Glaxo Wellcome)”–David Thrower Flawed UK Regulatory and Monitoring Systems (2001)

“The MCA is of course headed by a former top executive at SmithKline, Dr Ian Hudson.”–Private Eye

“5 out of 6 members of the (UK) Joint Committee on Vaccination and Immunisation had interests with Glaxo Wellcome, 4 with SmithKline Beecham (ref: May 1999 Secretary of State for Health)

AMERICAN ACADEMY OF PEDIATRICS http://www.cspinet.org/integrity/corp_funding.html
“Friends of Children Fund” Annual Report, July 1, 1996 – June 30, 1997, indicates $2.085 million in funding from corporations. Donors include Procter & Gamble, Gerber, Infant Formula Council, McNeil Consumer Products Company, National Cattlemen’s Beef Association, Johnson & Johnson Consumer Products, Abbott Laboratories, Wyeth-Lederle Vaccine & Pediatrics, Mead Johnson Nutritionals, SmithKline Beecham Pharmaceuticals, Schering Corp., Rhone-Poulenc Rorer, Food Marketing Institute, Sugar Association, International Food Information Council, Merck Vaccine Division, and others. Also gets foundation support (RWJ, Pew, etc.).

“Lemon S, Thomas DL. Vaccines to prevent viral hepatitis. N Engl J Med 1997;336:196-204. Dr. Lemon received grants from SmithKline Beecham Pharmaceuticals.“–NEJM

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1boringoldman Blog: ‘The Whole Industry’… (If Glaxo’s CEO wants to be Mr. Clean, he needs to pick up a broom )


Great post from the retired psychiatrist from his blog 


1boringoldman
Always astute and wise,

 very insightful blog

 and very much appreciated writing..

Great to see that there are  other people out there who see

 through
 
GSK's lies..

 http://1boringoldman.com/index.php/2014/04/07/the-whole-industry/

the whole industry…

Posted on Monday 7 April 2014

Fierce PharmaMarketing
By Tracy Staton
April 7, 2014

GlaxoSmithKline [$GSK] says it’s rolling out sales and marketing reforms around the world. Apparently, the changes come none too soon. The British drugmaker opened another bribery investigation, this time in Iraq, to check out allegations that it paid government-employed physicians to promote its products. And Glaxo hasn’t yet finished working through the scandalous Chinese bribery allegations that kicked off an industry-wide corruption crackdown.

So, CEO Andrew Witty and his team sound a bit … conflicted. On the one hand, Witty sounds the perfectly contrite corporate leader. He apologized for the marketing allegations that ended with a $3 billion Department of Justice settlements. He’s promised good behavior and touted those worldwide sales reforms. But on the other, the company is digging into at least two sets of corruption accusations, and faces related repercussions at home and in the U.S. Two bribery probes in two different geographic divisions? That’s a systemic problem.

When the Chinese bribery scandal hit, Glaxo’s U.K. headquarters was quick to say that head-office executives didn’t know about any malfeasance in its China subsidiary. That may be so. But if HQ didn’t know, that means HQ was either turning a blind eye or failing to pay enough attention. Either way, that’s not a good thing for a company trying to clean up its image.

If Witty really wants to reform GSK, then he and his top managers need to move beyond plausible deniability. They can’t just launch new quota-free sales-rep compensation and promise to stop paying speaking fees to doctors in the U.S. and beyond. Painful follow-through has to happen.

We need to see Glaxo execs take out their brooms, and move into global operations to sweep out misbehavior. If they don’t, whistleblowers and government investigators will. And that makes all those the sales-and-marketing changes look like little more than window-dressing.
Just a fluff piece to fill a column? I don’t think so. I think Tracy Stanton is on to something that Sir Andrew Witty and others need to listen to carefully. I don’t think the time honored method of putting a few platitude band-aids on a problem and waiting for the news cycle to pass is going to work very well. We’re onto that maneuver – a lesson learned in the school of hard experience. I was looking over some old posts and ran across any number of excuses, press releases, and statements in response to accusations in years past, and most of them would be laughed at these days or at least send eyes rolling. And plausible deniability is on top of the list of worn out spinning wheels. Two early versions came from my favorite bad example, Dr. Charles Nemeroff, when he was busted for leaving out conflict of interest declarations:
New York Times
By MELODY PETERSEN
August 3, 2003

Two scientists are raising concerns about an article in a medical journal that described experimental treatments for depression because an author did not disclose his significant financial ties to three therapies that he mentioned favorably. The executive editor of the journal said it had not required disclosure of the potential conflicts, but was considering changing its policy in light of the criticism. The ties between pharmaceutical companies and researchers have come under increasing scrutiny in recent years.

The lead author of the article, Dr. Charles B. Nemeroff, chairman of the department of psychiatry and behavioral sciences at the Emory School of Medicine in Atlanta, said he would have reported the conflicts of interest, which include owning the patent on a treatment he mentioned, if the journal had asked him to. ”I have always been totally compliant, probably gone overboard, with disclosure,” Dr. Nemeroff said. ”If there is a fault here, it is with the journal’s policy.”
The Wall Street Journal
By David Armstrong
July 19, 2006

Charles Nemeroff, one of the nation’s most prominent psychiatrists, edits the journal Neuropsychopharmacology, which this month favorably reviewed a controversial new treatment for depression. But Tuesday, the journal said it plans to publish a correction because it failed to cite the ties of the article’s eight academic authors to the company that makes the treatment, including the article’s lead author: Dr. Nemeroff.

The journal’s nondisclosure of the financial ties of its own editor as well as those of the other authors highlights the failure of many respected medical journals to identify relationships between academic researchers and medical companies that may benefit from positive research reports. A spate of recent lapses is prompting calls for more journals to ban offending authors from publication. In addition, medical schools are being urged to regulate relationships between their researchers and industry more closely…
His excuse that second time – clerical error. It didn’t work so well as the first one and he decided to step down as editor shortly thereafter. We can thank Drs. Bernard Carroll and Bob Rubin for both of those exposures. They came early and got the ball rolling. The investigations of Senator Grassley and Paul Thacker came next, and then the epidemic of suits against the Pharmaceutical companies with the release of enough incriminating documents to convince any doubters. So we’re now veterans of ten years learning that plausible deniability simply equaled a lie, and we’re not likely to buy such things anymore, almost by reflex.

I was a retired person before I was capable of believing that Doctors, Academic Department Chairmen, and Pharmaceutical Companies named after long-dead men with handle-bar mustaches were capable of the kind of deceit we’ve all seen in recent decades – but our naivety has given way to, at the least, a careful suspiciousness, even paranoia about such matters. And GSK has placed itself in a goldfish bowl that’s going to be hard to escape.

So when Tracy says, “We need to see Glaxo execs take out their brooms, and move into global operations to sweep out misbehavior” she’s not just moralizing, she’s giving GSK an appropriate heads up they really need to hear – not just GSK, the whole industry. We’re veterans now…

Remembering GSK’s 3 Billion Fine: The Biggest Healthcare Fraud in US History!


It is just unbelievable how this pharmaceutical company is permitted to continue to operate…