Case 1:16-cr-20967-KMW Document 1 Entered on FLSD Docket 12/22/2016 Page 1 of 20

SL
Dec 22, 2016

U NITED STATES D ISTR ICT C OU RT

FOR TH E SO UTH ERN DISTR IC T OF FLO R IDA
CA SE NO .

16-20967-CR-WILLIAMS/SIMONTON
18U.S.C.j371
18U.S.C.j2

UN ITED STA TES O F A M ER ICA

V.

TEVA LLC,
D efendant.

IN FO RM A TIO N

TheU nited Stateschargesthat,atalltim esrelevantto thisInform ation,unlessotherwise

specified:
G ENER AL ALLEGA TIO N S
RelevantStatutoa Backeround

The Foreign CorruptPracticesActof1977,asam ended,Title 15,United States

Code,Sections78dd-1,etseq.(TCPA''),wasenactedbyCongressforthepurposeof,among
otherthings,m aking itunlaw fulto actcorruptly in furtherance ofan offer,prom ise,
authorization,orpaym entofm oney oranything ofvalue,directly orindirectly,to a foreign
ofticialforthe pum ose ofobtaining orretaining business for,ordirecting businessto,any
Person.
RelevantEntities and Individuals

2.

TevaPharmaceuticallndustriesLtd.(:T eva'')wasanlsraelilimited liability

com pany with itsheadquartersin Petah Tikva,lsrael. Teva wasthe world'slargestm anufacturer

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ofgeneric pharm aceuticalproducts. Teva also m anufactured patented pharm aceuticalproducts,

including Copaxone,w hich wasused in the treatm entofm ultiple sclerosis. Teva ow ned and
controlled num erousconsolidated subsidiariesthrough w hich itm arketed and sold
pharm aceuticalproducts in variouscountries around the world. Teva'sAm erican Depository

Receipts(tW DRs'')weretradedontheNasdaqNationalMarketfrom October1987untilMay

2012,whenTeva'sADRSbegantobetradedontheNew YorkStockExchange(NYSE'').
A ccordingly,since October 1987,Teva has been an EEissuer''asthatterm isused in the Foreign

CorruptPracticesAct(FCPA''),Title15,United StatesCode,Sections78dd-1(a)and78m(b).
TEVA LLC (:ETEVA RUSSIA'')wasalimitedliabilitycompanyincomoratedin
the Russian Federation in 2010 and was a wholly-owned subsidiary ofTeva. TEVA RU SSIA,
and itspredecessorentities,operated on behalf,forthe benefit,and underthe controlofTeva,
and w asprincipally responsible forthe sale and m arketing ofTeva pharm aceuticalproducts in
Russia. TEVA RUSSIA w asan ttagent''ofan issuer,Teva,w ithin the m eaning ofthe FCPA ,

Title15,United StatesCode,Section78dd-l(a).
4.

TevalnternationalGroup(1T1G'')wasaunitofTevathatwasprincipally

responsible foroverseeing Teva'soperations in regionsoutside oftheU nited Statesand W estern

Europe,including in the Russian Federation. TIG w as in operation from in orabout2002 until

in oraboutm id-2010,atw hich pointTevaunderw enta com orate reorganization and TlG's
responsibilitiesw ere absorbed by otherTeva units.
t-l-eva Executive,''an Israelicitizen whose identity isknown to the United States
and the Com pany,w asthe seniorTeva executive responsible foroverseeing TlG between 2002
and 2010,and leftthe Com pany in 2014. Teva Executive wasan tiofficer,''tidirector,''

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ttem ployee,''and agent''ofan issuer,Teva,within the m eaning ofthe FCPA ,Title 15,United

StatesCode,Section78dd-1(a).
tl-l-eva Russia Executive,''a citizen ofthe Russian Federation whose identity is
known to the United Statesand the Com pany,w as a high-levelexecutive atTEV A RUSSIA

from in oraboutJanuary 2006 untilhe leftTEVA RU SSIA in oraboutStptem ber2012. Teva

Russia Executive wasan lagent''ofan issuer,Teva,w ithin the m eaning oftheFCPA ,Title 15,

UnitedStatesCode,Section78dd-1(a).
tRussian Official,''a citizen ofthe Russian Federation w hose identity isknown to
the United Statesand the Com pany,w as a high-ranking governm entofficialin theRussian
Federation,who held officialpositionson governm entcom m ittees. By virtue ofhis official
position,Russian Officialhad the ability to influene m attersrelated to thepurchase of
pharm aceuticalproductsby the Russian governm ent,including purchasesm ade during annual
auctionsheld by the Russian M inistry ofHealth. Russian O fficialw asa itforeign official''within

themeaningoftheFCPA,Title15,UnitedStatesCode,78dd-l(t)(l)(A).
8.

Russian Com pny''wasa group ofcompanies incom orated in the Russian

Federation,the identity ofwhich is known to the U nited States and the Company. Russian
Com pany w asa distributor,m anufacturerand re-packagerofpharm aceuticalproductsin the
Russian Federation. Russian Com pany wasow ned,controlled and m anaged by Russian Official.

From atleastin orabout2003 untilatleast2013,Russian Com pany's controlling shareswere

held in the nam e ofRussian O x cial's spouse,who wasnotinvolved in Russian Com pany's
businessoperations.

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Backeround on Teva Pharm aceuticalSales in the R ussian Federation

9.

The m anufacture,registration,distribution,sale and prescription of

pharm aceuticalswere highly-regulated activitiesthroughoutthe world. Countriestypically

established regulatory schem esthatrequired,am ong otherthings,the registration of

pharm aceuticals. ln certain countries,including the Russian Federation,governm ententities

w ere responsible forselecting which pharm aceuticalsw ould be purchased by govem m ent
institutions orm inistriesand forapproving which pharm aceuticalsw ould be eligible for
governm entreim bursem ent.
Copaxonew asthe brand-nam e ofglatiram eracetate,a drug used in the treatment
ofm ultiple sclerosis,and wasone ofthe few non-generic productssold by Teva. A yearly

prescriptionofCopaxone,whichpatientswererequiredtotakeasaonce-dailyinjection,costup
to tensofthousandsofdollars. During the relevanttim e period,Copaxone wasTeva'sm ost
profitable product.

TheRussian Federation had a socialized public healthcare system thatprovided

universalhealthcare to Russian citizens,w ith thecostofm edicalcare and drug treatm entsshared
between the central,regionaland localgovem m ents. In oraround Iate 2007,the M inistry of
Health designated seven illnesses and conditions asrare and expensive to treatand created a

program whereby the centralgovernm entw ould procure and supply to patientsthe necessary
m edicationsfortreating these illnessesand conditions.A m ong the covered illnessesw as
multiple sclerosisand treatm entby Copaxone. Since in oraround 2008,Russian governm ent
purchases ofCopaxone w ereprim arily m ade by theM inistry ofHealth atusually bi-annual
auctions.

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The Unlaw fulSchem es

12.

From 2006 through atleast2012,TEVA RUSSIA,through itsem ployeesand

agents,togetherw ith others,agreed thatTEVA RU SSIA w ould m ake corruptpaym entsto

Russian Oflk ial,intending thatRussian Officialwould use hisofficialposition and ability to

intluence the Russian governm entto purchase Copaxone through tenderoffers. Thepaym ents
werem ade through thehigh profitm arginsthatRussian Company earned as Teva'srepackager
and distributorofCopaxone forsalesto the Russian M inistry ofH ealth pursuantto the central
governm ent'sdrug purchase program .

In furtherance ofthe schem e in Russia,em ployeesand agentsofTEVA RU SSIA

sentem ailsthrough the U nited States.

14.

Em ployeesofTeva,based in lsrael,and em ployees ofTEVA RU SSIA,atthe

direction ofTeva Executive and others,soughtto increase sales ofCopaxone to the Russian
governm ent,including by doing businessw ith com panies ow ned and controlled by Russian

Official,know ing thathe wasa high-levelRussian governm entofficialatthetim e.

15.

On oraboutO ctober26,2006,Teva Russia Executive em ailed Teva Executive

and another seniorT1G M anagerabouta recentm eeting w ith Russian Official,providing them

withttanideaofthecaliberoftheperson(bylcitingbelowjustafew ofhisformaltitlesand
personalachievem ents.''l Teva Russia Executive described Russian Official'sofficialposition
and explained thatRussian Offkialw asthe key lobbyistofphanna-related questionsand
issues''aswellas a Ekey contactperson forK nesset,''the lsraeliparliam ent. Teva Russia
Executive explained thatRussian O ffcialw asthe ktownerofthe localw holesaling com pany

1Unlessbracketed,allquoGtionsappearasin the originaldocumentwithoutcorrectionsorindicationsof

misspellingsortypographicalerrors.

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gRussianCompanyl''alongwithseveralotherpharmaceuticalcompanies.TevaRussia
Executive's em ailfurthernoted thatRussian Oftscial'sktintluence in the industry''could benefit
Teva by,am ong otherthings,allow ing Teva to obtain Em ore speedy and straightforward

registrationofproducts.''TevaRussiaExecutivecautioned,however,thattttheresults(of

Russia'sl2008presidentialelectionscanaffectthestatusandscopeofgRussianOfticiall's
intluence-''

l6.

On oraboutOctober26,2006,TevaExecutive replied to Teva Russia Executive

thathedsupportged)exploringanykindofinitiativewhichcouldstrengthenourpositionin
Russia-''

17.

O n oraboutFebruary 8,2008,Teva Russia Executive sentTeva Executive an

emailattaching a reportaboutRussian Com pany. ln a section ofthe reportdetailing Russian

Com pany's tm anagem entand corporate governance,''Teva Russia Executive explained that

dgtlransparencyof(RussianCompanylshouldbeconsideredlow....Participationof(Russian
Offkial)andprobablysomelocalgovernmentofficialsintheownershipstructureiswellknown.''

18.

ln oraboutearly October2008,Teva m anagers,including TevaExecutive,met

with Russian Officialand a Russian Com pany executive in lsrael. Them eeting had been
arranged by Russian Com pany'sD irectorofSalesand M arketing.
l9.

On oraboutO ctober7,2008,Russian Company'sD irectorofSalesand

M arketing em ailed Teva Executive to follow-up on m atters discussed during the m eeting. The
em ailreiterated thatRussian Com pany wasliinterested to participate in the delivery and
distribution ofCopaxone,''and explained thatthe Russian governm enthad already dddefined''the
governm ent'sorderforCopaxone for2009. The em ailalso m entioned possible Sfuture
6

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scenarios''thatcould affectthe tdecision m aking''related to Copaxone sales,rem inded Teva

Executive thatRussian O m cialhad had ipersonalinvolvem ent...in the introduction of

Copaxone and otherim portanthealthcare initiativesin Russia,''and explained thatttitw illbe

beneficialforTevatograntthedistributionofCopaxoneto(RussianCompanylinfu11or
Partially-''
20.

Between in oraround October2008 and in oraround January 2009,Teva

em ployees,including Teva Executive,learned thatthe Russian Com pany executive was under
investigation in Russia forcorruption and thatTeva's risk insurance providerhad decided to stop
insuring transactionsw ith Russian Com pany.

21.

In oraround late 2008 orearly 2009,afterthe m eeting and em aildescribed in

Paragraphs 18 and 19,Teva Executive,Teva Russia Executive,and othersagreed thatTeva

w ould grantRussian Com pany the rightto distribute Copaxone in Russia,intending thatRussian
O ftk ialwould use his offk ialposition and ability to intluenceto increase salesofCopaxone to
theRussian governm ent. From early 2009 untilin oraboutm id-2010,Teva em ployeesexplored
variouspossibilities forRussian Com pany to sellCopaxone.
22.

On oraboutM arch 7,2009,Russian Com pany'sD irectorof Sales and M arketing

em ailed Teva Executive w ith inform ation abouta publictenderforthe purchase ofCopaxone

thathadbeenannouncedbytheRussianAcademyofMedicalSciencesCtRAMS'').Theemail
explained thatRussian Com pany's Etop m anagem enthasfirsthand relationsw ith RAM S''and
thatthe tenderoffered t1a very good chance to push furtherup Copaxonepositioning in Russia,

sinceRAM SanditsPresidenthave(a1significantroleininfluencingtheopinionofmedicaland
politicalstratum in Russia.''

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On oraboutM arch 8,2009,Teva Executive fonvarded the foregoing em ailto a

seniorTlG executivewiththenote,tltlhisisaninterestingofferasthisis(RussianOfficiall's
dom ain/specialty. Pls look into thisand advise soonest.''

On oraboutM arch 10,2009,the senior T1G executive forwarded Teva

Executive'semailto TevaRussiaExecutive,who confirmed thatRussian Company hadta

strong position in thisestablishm ent.'' Teva Russia Executive explained thathew asaw are ofthe

issue and w asalready dealing w ith a Russian Com pany employee who ttreportsdirectly to

(RussianOffkiall.''lnoraroundmid-2009,theRussiangovernmentannouncedanew strategy
forthe Russian Federation'sdom estic pharm aceuticalindustry,know n asttpharm a 2020.'' The
goals ofthe new strategy involved,am ong otherthings,an im portphase-outand changesto the

procurem entofpharm aceuticalproducts,prim arily by establishing a preference fordom estic

products. n ese changesstarted to apply in early 2009 and affected purchasesm ade through the
Russian governm ent'sannualprocurem entauction program . U nderthe law ,asannounced,
repackaging ofa foreign pharm aceuticalproductinside the Russian Federation could qualify for
the dom esticpreference underPharm a 2020.
25.

In oraround m id-2010,Tevareorganized itsbusinessand elim inated the TlG

businessunit. TEVA RU SSIA w asputunderthe newly-created EM IA businessunit.

In oraround m id-2010,TEVA RU SSIA employees,including Teva Russia

Executive,agreed w ith Russian Officialand otherson a plan forRussian Com pany to be Teva's
repackagerand distributorforCopaxone salesto the Russian governm ent. Russian Com pany
would repackage and distribute Copaxone on behalfofTeva. As setforth below,Teva hoped
thatRussian Officialwould use hispoliticalnetwork and offk ialinfluenceto benefitTeva to
supportm aintaining or increasing the am ountofCopaxone sold to the Russian governm ent.
8

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27.

ln oraround early A ugust2010,a Russian Com pany employee em ailed Teva

Russia Executiveto requestthatRussian Company receive a largerdiscounton salesto a

Russian governm entcustom er. On oraboutAugust5,2010,Teva Russia Executive forwarded

the com plaintto the m anagerofTEVA RU SSIA 'S lnnovative BusinessUnit,requesting that

Russian Com pany begranted a largerdiscount. The TEV A RU SSIA m anageropposed giving
Russian Com pany kEany additionalconcessions,''butTeva Russia Executive wrote back,
suggesting thatTEVA RU SSIA should considerthe requestastthe costofbuilding a

relationshipwith(RussianOfficiall,''astlthisyear,therewasasubstantialincreaseinthe
Copaxonerequestsfrom theIItAM SI,''andTEVA RUSSIA ttmaybenefitfrom gRussian
Official'slsupportinotherareasaswell.''
ln oraround lateA ugust2010,TEV A RU SSG em ployeesprovided a draftofthe
proposed Copaxone repackaging and distribution agreem entbetween Teva and Russian
Company to Teva em ployees in lsrael.

On oraboutSeptem ber12,2010,a TEVA RU SSIA executive em ailed the

Finance D irectorforTeva'sCopaxone businessunitand otherTeva m anagersand executivesin
Israelto provide the trationale forthe new schem e ofCopaxone business in Russia.'' The em ail
explained thatttthis yeartheRussian Governm enthas been contining to interfere into
pharm aceuticalm arketfunctioning. Thus ithasbeen continuing itspressure on pricesespecially
on those productsthatbeing ofhigh price are paid by the state budget.'' 'T'
he em ailfurther
explained thatthe focus ofthisprice pressure had been ttexpensive imported productspaid by the
governm ent,''including Copaxone,and thatthe Russian governm entw asseeking to

dencouragellcompetition intensification bybothfasttrack registration ofthenew competing

products(onewasregisteredthissummerforM S treatmentand weexpectittakespartintheM S
9

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tenderthisfall)andsupportingfastdevelopmentandintroductionofthelocalglatiramoids(they
callthem ,ofcourse,tcopaxone'sgenerics'l.'' ln theemail,theTEVA RUSSIA executivestated
thatthisEtand som e othernew factorsproduced a seriousthreats forthe Copaxone businessin
2011.55 A sa result,d
partnership w ith a robustinfluentiallocalplayerw as identified asthe proper
solution to the above challenges.'' The em ailstated thatthe partnerw asdsupposed to lobby
Copaxone in the state tender.'' He explained thatRussian Com pany tw asfound asthe right

companycapabletoassurekeepingCopaxone'sshareanditspriceandevenrgalisingthem both
uP.

ln hisem ailto Teva executives,the TEVA RU SSIA executive asked fortheir

approvaloftheproposed Russian Com pany repackaging and distribution agreem entdassoon as
possible.'' The em ailexplained thatitifw e do nothave the supply agreem entapproved and

signedby (the)midgdlelofthisweekwewillencounterveryrealthreatoflosinga l00million

USD Copaxone business in 2011.''
31.

On oraboutSeptem ber 12,2010,a TEV A RUSSIA m anagerem ailed Teva

executivesin Israelw ith additionalinfonnation supporting TEVA RU SSIA 'Srequest. The em ail
noted thatRussian Com pany washeaded by Russian Official,listed Russian O fficial'sofficial
positionson variousgovem m entcom m ittees,and explained thatttthe plan''w asto use Russian
O ftk ial'scontacts,including atthe M inistry ofHealth,to m aintain Copaxone'sshare ofthe
m arket,including by m inim izing the risk thata generic version ofCopaxone would beapproved
by the Russian governm ent,thereby reducing Teva'sm arketshare.
32.

On oraboutSeptem ber 12 and 13,2010,Teva Russia Executive sentem ailsto

seniorTeva executivesin Israelrequesting them to sign offon the agreem entw ith Russian
Com pany im m ediately.
10

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On oraboutSeptem ber l4,2010,a TEVA RUSSIA seniorm anagerem ailed Teva

RussiaExecutiveanddescribedameetinghehadjusthadwithRussianOm cial.Theemailsaid
thatRussian Om cialhad told him thatthe M inisterofHealth Kxhad returned from a vacation and

askedinthemorningiftherewasaconsrmationthattheentireproject...wouldtakeplace.''
TheemailexplainedthatRussian Ofticialwasconcem ed thatTevawould refusetoapprovethe
agreem entw ith Russian Com pany,and thatRussian Officialhad threatened thatboth the price
and the supply volum esw ould be purposefully tlowered'ifa partnership w ith him w asnot
established.''
On oraboutSeptem berl5,2010,Teva executives agreed to enterinto the

Copaxone repackaging and distribution agreem entw ith Russian Company.

35.

On oraboutOctober 7,2010,TEVA RUSSIA 'SLegalDirectorinitiated the

internalprocessto form ally enterinto the agreem entw ith Russian Com pany. Consistentwith

Teva'santi-corruption policy asitrelated to third-party agreem ents,the LegalDirectorsubm itted

acom pleted questionnaire abouttheRussian Com pany agreem entto Teva forreview and
approval. ln transm itting the m aterials,the LegalDirectorstated thatthe ttdealvalue isabout

US$ 100m illion for2011sales''and asked forimm ediatereview,callingthedealtErather

urgent.'' The em ailand supporting inform ation stated thatRussian O m cial'sw ife wasthe ow ner
ofthe com pany butdid notinclude thatRussian Officialran the business. The em ailalso
om itted factsknow n to Teva RussiaExecutive and otherTEVA RU SSIA employees,including
detailsaboutthe corruption investigation by R ussian authoritiesagainstthe Russian Com pany
executive and inform ation from Russian new sm edia reportson Russian Official'salleged
involvem entin corruption related to Russian governm entdrug procurem entauctionsgoing back
to 2006.

11

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36.

On oraboutOctober8,20l0,a Teva FinanceD epartm entm anagerwith

responsibility forapproving com pliance-related requestsforthe EM IA region directed a Finance

em ployee to forward the com pliance questiorm aire concerning the Russian Com pany agreem ent
to the RegionalCom pliance O fficerand to TEVA RU SSIA'SCFO for,am ong otherthings,due

diligence to be conducted.
O n oraboutOctober9,2010,in response to an inquiry aboutthe statusofdue

diligence on Russian Company,a seniorEM IA executive sentan em ailto anotherhigh-ranking

EM IA executive explaining thatTeva Russia Executivew ould be leading thedue diligence
process.A s setforth above,atthetim e,Teva Russia Executive had been pushing forthe
agreem entbetween TEV A RU SSIA and Russian Com pany.
38.

On oraboutO ctober21,2010,the EM IA RegionalCom pliance O fficerapproved

the agreem entbetween Teva and Russian Com pany.

39.

On oraboutO ctober28,2010,Teva executed the fram ework agreem entwith

Russian Company,which included granting Russian Com pany the rightto repackage and
distribute Copaxone in the Russian Federation as wellasan incentive agreem entw ith paym ents
tied to increasing salestargets. Atthe sam etim e Teva entered into the distribution agreem ent

w ith Russian Com pany,Teva term inated an agreem entw ith the R ussian com pany thathad

distributed Copaxone atseveralpriorM inistry ofH ealth auctionsand agreed to pay that
com pany a substantialbonus''paym entaspartofthe tenuination.
40.

On oraboutN ovem ber 12,2010,the Russian M inistry ofH ealth aw arded Russian

Com pany the contractto supply the Russian governm entw ith glatiram eracetate foritstender.

12

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41.

O n oraboutD ecem ber 13,2010,a TEVA RUSSG executive com m unicated via

em ailw ith a seniorm anageratRussian Com pany regarding m attersrelated to the recentlyawarded contractto supply Copaxone to the Russian governm ent.
42.

O n oraboutD ecem ber30,2010,Teva Russia Executive em ailed a seniorEM IA

executive abouta m eeting the executive w asscheduled to have w ith Russian Ofticial. ln
preparing the executive forthem eeting,Teva Russia Executive explained Russian Official's
position and intluence in the Russian governm entand stated thattheEEstate channelisa key one

forhisbusinesses.''TevaRussiaExecutiveexplainedthatEtthedilemma(RussianOm ciallfaces
ishow to protecthispositionsunderconditions when state funded businessin Russia is
becom ing transparent.'' Am ong otherthings,Teva Russia Executive asked the seniorEM IA

executivetodpush(RussianOfticialltodemandmorefundingforCopaxone(1inearly2011''
andtottobtainhiscommitmentinprotectingCopaxone(accesstotheMinister(ofHealthland
(M inistryofHealthldecisionmakers,leveragingSenatecapabilitiesl-''
43.

On oraboutJanuary 2,2011,the seniorEM IA executive em ailed Teva Russia

Executive abouthis m eeting w ith Russian Official,stating thatRussian Officialtistrongly

encouragesusto strengthen ourintluence w ith RegionalGovernm entNeurologist
Representatives,to ensure in the future Copaxone volum esare protected.''
44.

On oraboutJanuary 24,2012,Russian Com pany wasaw arded anothercontract

by the Russian M inistry ofH eaIth to supply the governm entw ith Copaxone.

45.

Tevaterm inated itsrepackaging and distribution relationship w ith Russian

Oftk ialand Russian Com pany in the m iddle of2013 asa resultofRussian Com pany'srefusalto
follow Teva'sdue diligence procedures.

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46.

D uring the tim e thatRussian Com pany was Teva'srepackagerand distributorfor

Copaxone,Tevaeam edprofitsofapproxim ately $204,167,303 on salesmadebyRussian

Com pany to the Russian governm ent.
CO UN T O NE

(Conspiracy to ViolatetheFCPA)
47.

Paragraphs 1through 46 are realleged and incorporated by reference asthough

fully setforth herein.

48.

From atleastin oraround 2006 through atleastin oraround 2012,in the

Southern D istrictofFlorida and elsewhere,TEVA RU SSIA,the defendant,togetherwith Teva

Executive,Teva Russia Executive,and othersknown and unknow n to the U nited States,w illfully
and know ingly did com bine,conspire,confederate,and agree togetherand w ith each otherto
com m itoffenses againsttheU nited States,thatis,asan agentofan issuer,to m ake use ofthe
m ailsand m eansand instrum entalitiesofinterstate com m erce com zptly in furtherance ofan
offer,paym ent,prom ise to pay,and authorization ofthe paym entofany m oney,offer,gift,
prom ise to give,and authorization ofthe giving ofanything ofvalue to a foreign om cialand to a
person,w hile know ing thata1loraportion ofsuch m oney and thing ofvalue w ould be and had
been offered,given,and prom ised,directly and indirectly,to a foreign official,forpurposesof:

(i)influencingactsanddecisionsofsuchforeignofficialinhisorherofficialcapacity;(ii)
inducing such foreign officialto do and om itto do acts in violation ofthe law fulduty ofsuch

official;(iii)securinganimproperadvantage;and(iv)inducingsuchforeignofficialtousehisor
herinfluence w ith a foreign governm entand agenciesand instnlm entalitiesthereofto affectand

influence actsand decisionsofsuch governm entand agenciesand instnzm entalities,in orderto

assistTeva and TEVA RU SSIA in obtaining and retaining businessforand w ith,and directing
14

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businessto,Teva,TEVA RU SSIA and others,in violation ofTitle 15,United StatesCode,

Section 78dd-1(a).
O biectofthe Conspiracv

49. Theobjectoftheconspiracywasto secureandincreasesalesofCopaxonetothe

Russian M inistry ofHealth by m aking corruptpaym entsto Russian Official,a foreign official.
M anner and M eansofthe Conspiracv

50.

The m annerand m eansby w hich TEVA RU SSIA and itscoconspirators soughtto

accom plish the purposesofthe conspiracy included,am ong otherthings,the follow ing:
TEVA RU SSIA,through certain ofitsemployeesand agents,soughtto
have Teva enter into a distribution agreem entw ith Russian Com pany intending thatRussian
Officialwould exercise his influence to increase Copaxone sales.
b.

Employees and agentsofTEVA RU SSIA concealed negative inform ation

aboutRussian Com pany w hen Teva w asundertaking due diligence,including inform ation about
Russian Om cial'salleged involvem entin corruption related to Russian governm entdrug
procurem entauctions.

TEV A RU SSIA,through itsem ployeesand agents,entered into an

agreem entw ith Russian Company whereby Russian Com pany becam e Teva'srepackagerand

distributorofCopaxone in sales ofthe drug to the Russian govenzm ent.

d.

TEVA RU SSIA,through itsem ployeesand agents,togetherw ith others,

paidorcausedtobepaid morethan $65 million inprofitstoRussianCompany in connection

w ith salesofCopaxone to the Russian governm ent,intending thatsom e oraIlofthe m oniesbe
given to Russian Officialand others.

15

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O vertA cts

ln furtheranceoftheconspiracyandtoachieveitspurposeandobject,atleastone
ofthecoconspiratorscom m itted,and caused to be com m itted,in the United States,and
elsewhere,the follow ing overtacts,am ong others:

On oraboutO ctober7,2008,Russian Company'sD irectorofSalesand

M arketing sentan em ailto Teva Executive m em orializing a recentm eeting w ith Russian O fficial
and others,which explained thatttitw illbe beneficialforTeva to grantthe distribution of

Copaxoneto(RussianCompany)infullorpartially.''
On oraboutM arch 8,2009,Teva Executive sentan em ailto Teva Russia
Executive,an executive ofthe TEVA RUSSIA,and others,instructing Teva Russia Executive to
exploreentering into an agreem entw ith Russian Com pany to sellCopaxone in an upcom ing
Russian governm enttender.
O n oraboutA ugust5,2010,TevaRussia Executive sentan em ailto an
employee ofTEVA RUSSIA instructing him to grantRussian Company an increased profit

m argin on salesofCopaxoneto the Russian governm ent,explaining thatthis should be

consideredtthecostofbuildingarelationshipwith(RussianOfficiall.''
d.

ln oraround late A ugust2010,TEVA RUSSIA em ployeesprovided a

draftofthe proposed Copaxone distribution agreem entbetween Teva and Russian Com pany to
Teva em ployeesin lsrael.
O n oraboutSeptem ber 12,2010,a TEVA RU SSIA m anagerem ailed
Teva executives in Israelw ith additionalinform ation abouttheproposed distribution agreem ent,
noting thatRussian Com pany w asheaded by Russian O m cial,listing the officialpositions held

Case 1:16-cr-20967-KMW Document 1 Entered on FLSD Docket 12/22/2016 Page 17 of 20

by Russian O fficialon variousgovernm entcom m ittees,and explaining thattttheplan''w asto

usethe officialpositions held by Russian Officialto m aintain Copaxone'sshare ofthem arket.
On oraboutOctober28,2010,Teva executed the fram ew ork agreem ent
w ith Russian Company,which included granting Russian Com pany the rightto distribute
Copaxone in the Russian Federation asw ellasan incentive agreem entw ith paym entstied to
increasing salestargets.
On oraboutD ecem ber 13,2010,a TEVA RU SSG executive
comm unicated via em ailw ith a seniorm anageratRussian Company regarding m attersrelated to
the recently-awarded contractto supply Copaxone to the Russian governm ent.

h.

On oraboutDecem ber30,2010,Teva Russia Executive em ailed a senior

TevaEM IA executive abouta m eeting the executive wasscheduled to have w ith Russian

Ofticial.Amongotherthings,TevaRussiaExecutiveaskedtheexecutivetopushgRussian
OfficialltodemandmorefundingforCopaxone(1inearly201l''andtottobtainhiscommitment
inprotectingCopaxone(accesstotheM inister(ofHealth)and(M inistryofHealthqdecision
makers,leveragingSenatecapabilitiesl.''
A llin violation ofTitle 18,U nited StatesCode,Section 371.
AN DREW W EISSM AN N

ChietlFraud Section
BY :
ROHA N A .V lR
R
JOIN A LEX ROM AN O
TrialAttorneys,Fraud Section
Crim inalDivision
United States Departm entofJustice
1400 N ew Y ork Ave.,N .W .
W ashington,D .C.20005

(202)598-2253

UNITED STATES DISTRICT COURT

Case 1:16-cr-20967-KMW Document
onOFLSD
SO UTH 1
ERNEntered
D ISTRICT
F FLORDocket
IDA 12/22/2016 Page 18 of 20

UNITED STATES O F AM ER ICA

CA SE NO .

V:.

CERTIFICATE O F TRIAL ATTO RNEY *

TEVA LLC (RUSSIA),

Defendant.

CourtDivision:(selectone)

X F
Mi
TL
ami

Superseding Case Inform ation:

New Defendantts)

N umberofN ew Defendants

Ke
w/BWest

Yes

No

FTp Totalnumberofcounts

1do hereby certify that:

lhavecarefully considered theallegationsofthe indictm ent,thenumberofdefendants,thenum berof
probable witnessesand the legalcomplexitiesofthe Indictment/lnform ation attached hereto.

lam ararethatthe information suppliedon thisjtatementwillberelied upon by theJudgesofthis

Courtln settingtheircalendarsandschedulingcrlminaltrialsunderthemandateoftheSpeedy Trial
Act,Tltle 28 U .S.C.Section 3161.

lqterpreter:

(YesorNo)

Llstlanguageand/ordialect

Thiscase willtake

No
daysforthe partiesto try.

Please check appropriate category andtype ofoffense listed below :

(Checkonlyone)

(Checkonl
yone)

I
11
1l1
IV
V

0 to 5days
6 to 10 days
11to 20 days
21to 60 days
61daysand over

6:

Hasthiscasebeenpreviously filed inthisDistrictCourt? (YesorNo)

lfyes:
Judge:

Petty
M inor
M isdem .
Felony

--

No

Case No.

(Attachcopy ofdispositiveorder)
Hasacomplaintbeen filedinthismatter?
lfyes:
M agistrateCaseN o.

(YesorNo)

No

Related M iscsllaneousnumbers:

Defendantts)lnfederalcustody asof
Defendantts)lnstatecustodyasof
Rule20 from the Districtof
lsthisapotentialdeathpenalty case?(YesorNo)

No

Doesthiscase originate from am atterpending in theNorthern Region ofthe U.S.Attorney'sOffice

priorto October l4,2003?
Yes
No X
8.

D?esthiscaseoriginatefrom amatterpending in theCentralRegion oftheU.S.Attorney'sOffice

prlorto Septem ber 1,2007?

Yes

No

ROHAN A VIRG

*penaltySheetts)attached

TRIALATYORNEY DEPToFJvsrlcE
CRIMINAL Dlvlslcx

Rsv4/8/08

Case 1:16-cr-20967-KMW Document 1 Entered on FLSD Docket 12/22/2016 Page 19 of 20

UN ITED STA TE S D ISTR ICT CO U RT

SO U TH E RN D ISTR IC T O F FLO RID A
PENA LTY SH EET

Defendant'sName: TevaLLC (Russia)

C ase N o:
Count#:1

Conspiracy to V iolate the Foreign CornlptPractices Act

18 U.S.C.i 371

*M ax.Penalty:

Fine ofup to $500,000 orTwicethe GrossGain

Count#:2

*M ax.Penalty:

Cotmt#:

*M ax.Penalty:

Count#:

*M ax.Penalty:
Count#:

*M ax.Penalty:

*Refersonly to possibleterm ofincarceratiu l-doesnotinclude possiblefines,restitution,

specialassessm ents,parole term s,or forfeitures thatm ay be applicable.

Case 1:16-cr-20967-KMW Document 1 Entered on FLSD Docket 12/22/2016 Page 20 of 20

AO 455(Rev.01/09)Waiverofanlndictment

U NITED STATES D ISTRICT COURT

forthe
Southern DistrictofFlorida
United StatesofAm erica
V.

CaseN o.

Teva LLC

W AIVER OF AN INDICTM ENT

Iunderstandthatlhavebeen accused ofoneormoreoffensespunishableby imprisonmentformorethan one

year.lwasadvised in open courtofmy rightsand thenatureoftheproposedchargesagainstme.
Afterreceiving thisadvice,lwaivemy rightto prosecution by indictmentand consenttoprosecution by
inform ation.

Date:

12/22/2016

''
(Qkla t-t-L (,n
Defendant'
ssignature

/z' fx
Signatureofdefendant'
sattorney
Martin J.W einstein

Printednameofdefendant'
sattornev