(HedgeCo.Net) The U.S. District Court for the Southern District of New York has entered a final judgment against Jerry Li, the former managing director of a U.S.-based direct selling company in China who was previously charged with bribing government officials in China in violation of the Foreign Corrupt Practices Act.
The SEC’s complaint alleged that from 2006 to 2016, Li orchestrated a scheme in China to bribe local, provincial, and national government officials in order to obtain direct selling licenses and curtail government investigations of his company’s business practices. The complaint further alleged that Li directed that the bribes be made through payments of cash, gifts, travel, meals and entertainment, and that Li falsified company expense reports to conceal the bribes.
The judgment, entered on the basis of default, enjoins Li from violating or aiding and abetting violations of Sections 13(b)(5) and 30A of the Securities Exchange Act of 1934 and Rule 13b2-1 thereunder, and aiding and abetting violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act. Li is also ordered to pay a civil penalty of $550,092