It seems as though the theme of GlaxoSmithKline’s (NYSE:GSK) year thus far is “corruption,” with the past few months unraveling several different investigations of bribery and corruption in China, Poland, Jordan, Iraq, and Lebanon. Now, a GSK executive has been charged with leading a network of corruption within China’s pharmaceutical company.
Mark Reilly, currently head of GSK’s China unit, was apparently caught off-guard by the accusations, and wasn’t expecting to face the specific allegations that have since been laid against him. Reuters notes that the charges Reilly faces are the most serious corporation corruption charges ever leveled against a foreign national in China.
Reilly, in addition to heading GSK’s China unit, also serves as the firm’s legal representative in the country, according to Reuters. He is being charged with ordering his sales team and his subordinates to bribe hospital doctors, healthcare organizations, and other parties in an effort to increase drug sales for GSK. The charges are being leveled following a 10-month probe in which officials found that his efforts helped GSK raised billions of yuan in additional revenue between 2009-2012.