SEC accuses North Texas company of bribery

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Associated Press

Posted on July 11, 2012 at 2:33 AM

DALLAS (AP) — A North Texas-based medical device company has agreed to pay $5.2 million to settle federal regulatory charges that its subsidiary bribed Mexican officials for sales contracts with government hospitals.

The Securities and Exchange Commission said Tuesday that Lewisville-based Orthofix International N.V. had been charged with violating the Foreign Corrupt Practices Act.

The SEC says the bribes included cash, laptops and televisions and went on for several years, resulting in $5 million in illegal profits.

Upon discovery by corporate officials, Orthofix self-reported the scheme to the SEC and fired the executives at Orthofix's Mexican subsidiary involved. Last month Orthofix agreed to pay $42 million in penalties to settle cases related to fraudulent claims to Medicare and other federal programs.

Peter Spivack, attorney for Orthofix, didn't return a message seeking comment.

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