YANLIANG LI, Bribery and Perjury, New York 2007
Two top executives of a global multi-level marketing company have been charged with a scheme to pay bribes and circumvent internal accounting controls in violation of the Foreign Corrupt Practices Act (FCPA).
YANLIANG LI, a/k/a 'Jerry Li,' the former head and managing director of the China subsidiary of a publicly traded international multi-level marketing company, and HONGWEI YANG, a/k/a 'Mary Yang,' the former head of the external affairs department of the China Subsidiary, are each charged with one count of conspiring to violate the FCPA.
LI is also charged with one count of perjury and one count of destruction of records in federal investigations.
The scheme, which lasted from in or about 2007 through in or about February 2017, involved paying bribes to Chinese government officials to promote and expand the company's business in China and to avoid regulatory scrutiny.
U.S. Attorney Geoffrey S. Berman said, 'Li and Yang, both former top executives of a global multi-level marketing company headquartered in Los Angeles, allegedly approved the extensive and systematic payments of bribes to Chinese government officials over a ten-year period.'
LI and YANG remain at large. The case is assigned to U.S. District Judge Vernon S. Broderick.
According to the allegations in the Indictment unsealed today in Manhattan federal court, Company-1 was a publicly traded multi-level marketing company that sold health care, personal care, and other products in more than 90 countries around the world, including China.
Company-1 conducted business operations in China through a group of wholly owned subsidiaries based in China. By in or about 2016, the China Subsidiary was responsible for approximately 20 percent of Company-1's worldwide net sales, which exceeded $4 billion.
The China Subsidiary's external affairs department was responsible for interfacing with Chinese government officials and obtaining direct-selling licenses, which were required for the company to operate in China.
The indictment alleges that LI and YANG conspired to pay bribes to Chinese government officials in exchange for the direct-selling licenses and to avoid regulatory scrutiny.
The case signifies this Office's commitment to ensuring that companies operating in the U.S. do not gain an unfair advantage through corruption and illegal bribes of foreign officials.
Assistant Attorney General Benczkowski said, 'Today's charges further demonstrate that the Department of Justice will hold accountable those who undermine the integrity of our financial markets by paying bribes and circumventing the internal controls of publicly traded companies.'
No sentence or outcome information is available for this case as the defendants remain at large.
The charges against LI and YANG are a significant step in the government's efforts to hold accountable those who engage in corrupt practices and undermine the integrity of our financial markets.
The case is assigned to U.S. District Judge Vernon S. Broderick, and the indictment can be found on the court's website.
Key Facts
- State: New York
- Category: Public Corruption
- Source: DOJ Press Release â†â€â€
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