There is a reason why many companies choose Barbados to establish “special” subsidiaries and funds. Our country has a different balance between oversight and legitimacy. Not so much of the former, but hopefully enough of the latter.
Sometimes though, we wonder if the balance gets a little too skewed.
From the New York Post…
Canadian drug maker Biovail disclosed that federal prosecutors from the Eastern District of New York are investigating issues related to its accounting and stock trading going back to 2001.
Biovail, maker of antidepressant drug Wellbutrin, disclosed the investigation deep within an earnings release.
While the Toronto-based company did not elaborate on what the feds are seeking, it did note the Securities and Exchange Commission focused the federal probe on the same issues that are part of an ongoing investigation.
(snip)According to Biovail’s 10-K last year, the SEC was seeking information on “the company’s accounting and financial disclosure practices.”
The filing also noted that the SEC is examining Biovail’s 2002 purchase of “a corporate entity.”
That is a reference to Pharma Tech, a Barbados-based research and development company that The Post last year reported had a very light footprint in the world of drug research.
Purchased by Biovail for $18.8 million, Pharma Tech has almost no paper trail of products, research and development, or staff. It shared the same Barbados address as Biovail…
… read the entire article at the New York Post (link here)