Secret Sex Video of Executive Sparked Major Bribery Probe on GlaxoSmithKline

A sex video sparked a major investigation into a £90 million (US$153 million) China bribery probe on British drugs giant GlaxoSmithKline, reports the BBC News.

The video of former GSK China Investment Head Mark Reilly and his Chinese girlfriend was secretly filmed and emailed anonymously to board members of the company.

Reilly, who is being investigated for allegedly bribing doctors and other health officials in China, had hired Peter Humphrey, a British investigator based in China, to look into who instigated the filming as well as who had sent emails making serious fraud allegations.

The email sender accused Reilly of ordering staff to bribe hospital officials to use GSK products.

The Daily Mail UK reported that Humphrey's probe focused on former disgruntled employee Vivien Shi, 49, a prominent businesswoman whose family is part of Shanghai’s communist elite.

However, Humphrey did not succeed and months later was arrested and detained along with his wife, Yu Yingzeng, a US citizen.

Following Humphrey's arrest, Reilly stepped down from his post and returned to U.K. in July last year. He remained as a GSK employee.

In the same month, Chinese authorities launched a probe on the company and its executives.

Throughout its investigation, China's Ministry of Public Security found that GSK China Investment used various channels like travel agencies to bribe without restraint government officials, drug associations, medical foundations, hospitals and doctors.

The firm engaged in direct bribery as well as indirect bribery through its sponsorship of various activities, the ministry said.

The ministry also revealed that some executives at GSK China Investment had used false value-added tax receipts, fake receipts from travel agencies for trips and fake general receipts.

Following the ministry's investigations, senior executives of GSK in July 2013 "confessed to serious commercial bribery and tax crimes."

Meanwhile, in an attempt to clear his name, Reilly returned to China, but on May 14, 2014, was charged by the Chinese with "presiding over a web of corruption," according to The Sunday Times.

If found guilty, Reilly could face life in prison.


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