NEW YORK: U.S. prosecutors criminally charged two former executives of Herbalife Nutrition Ltd's Chinese unit with running a decade-long scheme to bribe Chinese government officials to win business and evade regulatory scrutiny, a person familiar with the matter said.
Prosecutors also charged Li with perjury for lying under oath when the U.S. Securities and Exchange Commission questioned him about the alleged bribes, and for destroying evidence. Lawyers for the defendants could not immediately be identified. Herbalife did not immediately respond to requests for comment.The charges were announced six weeks after Herbalife agreed to pay US$20 million to settle SEC civil charges that it misled investors from 2012 to 2018 about how its Chinese business operated, without admitting wrongdoing.
Authorities said the bribes included cash, entertainment, meals and travel, and Yang's department reimbursed employees more than US$25 million for entertaining and gift-giving.