Reuters: Philips had prior knowledge of 'suspicious' sales in Brazil

A new report from Reuters asserts that Philips Healthcare knew of suspicious medical equipment sales to government officials in Brazil years before the scheme was uncovered in May.

According to the report, ex-employee Jose Israel Masiero Filho, noticed “irregularities” in three deals to sell equipment to Brazilian middlemen. Filho emailed an internal Philips hotline and, soon after, alerted at least three senior executives in 2010, according to court records, internal company documents and interviews completed by Reuters.

In May, the FBI announced it was investigating Philips, along with Johnson & Johnson, Siemens AG and General Electric for alleged kickbacks in a scheme to sell medical equipment, including imaging technologies, to Brazil.

Philips told Reuters, in an email statement, that it is “cooperating” with Brazilian authorities investigating the country’s medical device industry. Philips refused to discuss Masiero or why he was fired.

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