Merck KGaA (NYSE: MRK)’s US life sciences division, MilliporeSigma, has been at the center of a US Department of Justice (DoJ) investigation into the fraudulent sale and export of biochemicals, including cocaine and fentanyl, to China. The scheme, which lasted from July 2016 until its discovery in May 2023, involved two individuals: Gregory Muñoz, a salesperson for MilliporeSigma, and Pen (Ben) Yu. Yu, posing as a university research lab employee, secured significant discounts on approximately $14 million worth of biochemicals, with nearly $5 million in discounts facilitated by Muñoz. The DoJ has declined to press charges against MilliporeSigma due to the company’s swift self-reporting and cooperation.
The seven-year conspiracy saw Yu and Muñoz engage in wire fraud, using gift cards as compensation and falsifying export documents to ship the chemicals to China. Both have pleaded guilty to wire fraud conspiracy and are awaiting sentencing. This case marks the first time the DoJ’s National Security Division has declined prosecution of a company under its voluntary self-disclosure program, highlighting the importance of corporate compliance and transparency.- Flcube.com
