Investigators Peter Humphrey, Yu Yingzeng Arrested

Fraud investigators Peter Humphrey, a British citizen, and his wife Yu Yingzheng, a naturalized American citizen, have been formally arrested after being detained for six weeks. From the Wall Street Journal:

In a statement to The Wall Street Journal, the family said the two are suspected of breaking Chinese laws related to purchasing personal information. The statement said the two have lawyers and have been in touch with consular officials.

Mr. Humphrey, the British co-founder of ChinaWhys Co. and a former reporter with Reuters news agency, is among the better-known private corporate investigators in China. His ChinaWhys co-founder and wife, who goes by the name Ying, is a U.S. citizen and a California-educated accountant.

The two were detained by police, but not formally arrested, on July 10, the statement said.

Their detention came amid a Chinese police investigation into bribery allegations against U.K. drug maker GlaxoSmithKline PLC. A number of people with knowledge of the situation say Glaxo has been a client of Mr. Humphrey’s firm, though his current status with the drug maker isn’t clear. Glaxo has said some of its China executives may have violated Chinese law and company policy and that it is cooperating. [Source]

The investigation into GlaxoSmith Kline is ongoing, with recent revelations that the company paid for all-expense paid trips for Chinese doctors with the goal of getting them to prescribe GSK medicines. From the Wall Street Journal:

Cui Lihua, a physician at Beijing’s Bo’ai Hospital, was one of the more than 30 doctors invited on a three-day tour that included a trip to Elephant Trunk Hill and Seven Stars Park, attractions known for their lush natural settings and a chance to see wild monkeys. Though an itinerary reviewed by The Wall Street Journal didn’t specify time for training, Dr. Cui says she learned a lot and received a lecture fee from Glaxo. She declined to comment on the fee, wouldn’t provide details on the value of the trip and didn’t respond to subsequent requests for comment.

Other trips allegedly went to places as far-flung as Budapest and Greece, according to travel documents the anonymous tipster sent to Glaxo executives that were later reviewed by the Journal. The tipster said such company-sponsored trips were part of a broader effort involving perks and cash—including 1,000 yuan, or about $160, honorariums and 2,000-yuan speaking fees—to get doctors to boost drug prescriptions. [Source]

August 20, 2013 11:12 PM
Posted By:
Categories: Economy, Law, Politics