Chinese Medical Device Distributor and Owner Sentenced for $2M+ Bribery Scheme Involving Imported Stents

Source：China Judgments Online

Recently, the Judgment Documents Network released a verdict on bribery involving imported stents and balloons.Imported Stent Distributors Pay Hebei Medical University Affiliated Second Hospital Vice President and East CampusTwo Internal Medicine Directors Received Kickbacks of Over 14 Million Yuan; Boss Convicted of Unit Bribery, Sentenced to 1 Year and 10 Months in Prison, and Fined 200,000 Yuan; Agency Company Fined 300,000 Yuan.

According to the confession of the vice president and director who accepted bribes, Ma Mou gaveMedtronic stents have a rebate of 5,000 yuan per unit; for balloons priced above 4,000 yuan, the rebate is 1,000 yuan per unit, and for those priced below 4,000 yuan, the rebate is 800 yuan per unit.The rebate ratio for Demax Medical's consumables is 20%.

Ma offered kickbacks in cash, usually packaged in brown paper envelopes, file bags, or similar bags. After two directors of the cardiovascular department received the kickbacks from Ma, they distributed the money among the doctors in their departments.

The verdict shows that Shanghai Demax Medical Trading Company and its actual controller, MaIn the process of selling medical consumables to the First Department of Cardiovascular Medicine and the Second Department of Cardiovascular Medicine at the East Campus of the Second Hospital of Hebei Medical University, violated national regulations by providing benefits to Li Moujun, then vice president of the hospital.Director of the First Department of Cardiovascular Medicine, Wang Mouyi,Director of the Second Department of Cardiovascular Medicine, Wu Mouli, was given a total cash kickback14,033,302 yuan, the circumstances are serious, and their actions have constituted the crime of unit bribery.

Public Prosecution: Wei County People's Procuratorate.

The defendant, Shanghai某某科 Trading Firm, with the Unified Social Credit Code ×××7J, is located in Fengxian District, Shanghai, and its legal representative is Wu某伟.

Wang Mouchen, male, born on February 9, 1956, representative in the lawsuit.

The defendant, Ma Mou, male, born on December 26, 1981, with a bachelor's degree, is the actual controller of a certain trade business in Shanghai. His registered residence is in Chang'an District, Shijiazhuang City, Hebei Province, and he resided there prior to his arrest. Suspected of duty-related crimes, he was placed under detention by the Wei County Supervisory Committee on December 6, 2023. Suspected of corporate bribery, he was criminally detained by the Wei County Public Security Bureau on February 7, 2024, upon the decision of the Wei County People's Procuratorate. On February 20, 2024, he was arrested by the Wei County Public Security Bureau following the decision of the Wei County People's Procuratorate. He is currently held in the Wei County Detention Center.

Defense Lawyer Liu Xiaoyu, a lawyer from Hebei Changning Law Firm.

The People's Procuratorate of Wei County charged Shanghai Demax Medical Trading Firm and Ma with the crime of unit bribery in the indictment document numbered Ji Wei Jian Xing Su [2024] No. 102, and brought the case to this court on April 10, 2024. This court lawfully formed a collegiate bench and publicly held a trial for this case. The People's Procuratorate of Wei County assigned prosecutor Xue Wentao to attend the court session to support the prosecution. Wang Chen, the litigation representative of Defendant Shanghai Demax Medical Trading Firm, defendant Ma, and his defense counsel Liu Xiaoyu attended the court session. The trial has now concluded.

The People's Procuratorate of Wei County accused that from 2013 to 2020, Beijing Demax Medical Technology Co., Ltd. (hereinafter referred to as "Company C", which was deregistered on June 15, 2021), Shijiazhuang Demax Medical Device Sales Co., Ltd. (hereinafter referred to as "Company D", which was deregistered on August 6, 2017), Shijiazhuang Demax Trading Co., Ltd. (hereinafter referred to as "Company E", which was deregistered on November 11, 2020), and the defendant unit Shanghai Yike Trade Business (hereinafter referred to as "Shanghai Yike"), violated national regulations in the process of selling medical consumables to the East Campus Cardiovascular Medicine Department I and Cardiovascular Medicine Department II of Hebei Medical University Second Hospital (hereinafter referred to as "Hospital B"). Through the direct person responsible for medical consumables sales at Company C and Company D, and the actual controller of Company E and Shanghai Yike, the defendant Ma gave cash rebates to Li Jun, then vice president of Hospital B, Wang Yi, director of the East Campus Cardiovascular Medicine Department I, and Wu Li, director of the East Campus Cardiovascular Medicine Department II, totaling RMB 14,033,302.

The specific facts are as follows:

1. From July 2018 to December 2018, the defendant unit, Shanghai Yike, inIn the process of selling medical consumables to某某Second HospitalIn violation of national regulations, through the actual controller of the company and defendant Ma Mou, a total of RMB 917,800 in cash kickbacks was given to Li Moujun, then vice president of XX Second Hospital.

2. From January 2019 to December 2020, the defendant unit Shanghai Eike inIn the process of selling medical consumables to XX Second HospitalIn violation of national regulations, through the actual controller of the company and defendant Ma Mou, cash kickbacks totaling RMB 664,400 were given to Wang Mouyi, then director of the First Department of Cardiovascular Medicine at the East Campus of a certain hospital.

3. From July 2018 to December 2020, the defendant unit Shanghai Yike inIn the process of selling medical consumables to XX Second Hospital, in violation of national regulations, through the actual controller of the company and defendant Ma, gave cash kickbacks totaling RMB 238.17312 million to Wu, then director of the Second Department of Cardiovascular Medicine at the East Campus of a certain hospital.

4. From January 2016 to July 2018, a certain company named Wu was inIn the process of selling medical consumables to XX Second Hospital, in violation of national regulations, through the actual controller of the company and defendant Ma, gave cash rebates totaling RMB 3,940,200 to Li Jun, then vice president of a certain Second Hospital.

5. From March 2016 to June 2018, a certain company named Wu (Company E) inIn the process of selling medical consumables to XX Second HospitalIn violation of national regulations, through the actual controller of the company and defendant Ma, cash kickbacks totaling RMB 230.72516 million were given to Wu, then director of the Second Department of Cardiovascular Medicine at the East Campus of a certain hospital.

6. From July 2014 to December 2014, Guangyuan Litong inIn the process of selling medical consumables to XX Second Hospital, violating national regulations, the direct responsible person of the company and defendant Ma gave cash rebates totaling RMB 620,000 to Li Jun, who was then the vice president of a certain Second Hospital.

7. From July 2013 to December 2014, Guangyuan Litong in ChinaIn the process of selling medical consumables to XX Second Hospital, violating national regulations, through the company's direct responsible person and defendant Ma, gave cash kickbacks totaling RMB 15,958,952 to Wu, then director of the Second Department of Cardiovascular Medicine at the East Campus of a certain hospital.

8. From January 2015 to December 2015, a certain Ding company inIn the process of selling medical consumables to XX Second Hospital, violating national regulations, the direct responsible person of the company and defendant Ma gave cash rebates totaling RMB 1,265,400 to Li Jun, who was then the vice president of a certain hospital.

9. From January 2015 to December 2015, a certain Ding company in ChinaIn the process of selling medical consumables to XX Second Hospital, in violation of national regulations, the direct responsible person of the company and the defendant Ma gave cash rebates totaling RMB 340,624 to Wu, then director of the Second Department of Cardiovascular Medicine at the East Campus of a certain hospital.

After the case occurred, the defendant Ma truthfully confessed the criminal facts known to the supervisory authority and has voluntarily turned over 20.02871 million yuan of illegal gains to the Wei County Supervisory Commission.

In response to the aforementioned charges, the prosecution has provided the following evidence materials to this court: 1. Documentary evidence: procurement and acceptance records of medical device user units, relevant information on usage conditions, explanations regarding the procurement amounts and quantities of Medtronic cardiac intervention products and Demax Medical cardiac intervention products, materials related to product redistribution, detailed bank transaction records, company archival materials, and other documentary evidence; 2. Witness testimonies: testimonies from witnesses Wang Moujia, Ma Mouying, Wu Mouwei, and others; 3. Defendant's statements and defenses: statements and defenses from defendant Ma Mou, as well as statements and defenses from co-defendants Li Moujun, Wu Mouli, and Wang Mouyi; 4. Expert reports: Special audit report issued by Handan Runyong Certified Public Accountants; 5. Other evidentiary materials: proof of defendant Ma Mou’s household registration, certificate of no criminal record, and details of apprehension.

The public prosecution authority believes that: The defendant entity, Shanghai某某科 Trading Firm, and the defendant Ma Mou sought to obtain improper benefits by giving kickbacks to state employees, violating national regulations, under serious circumstances. Their actions violated Article 393 of the "Criminal Law of the People's Republic of China." The criminal facts are clear, and the evidence is reliable and sufficient. They should be held criminally responsible for the crime of unit bribery. The defendant entity, Shanghai某某科 Trading Firm, and the defendant Ma Mou have confessed and accepted punishment. According to Article 15 of the "Criminal Procedure Law of the People's Republic of China," they can be treated leniently according to law. After being taken into custody, the defendant Ma Mou truthfully confessed his crimes, which constitutes an admission. According to Article 67, Paragraph 3 of the "Criminal Law of the People's Republic of China," he may be given a lighter punishment. In accordance with Article 176 of the "Criminal Procedure Law of the People's Republic of China," the case has been brought to prosecution. Please sentence them according to law.

The defendant, Shanghai某某科Trade Merchant, has no objection to the charged criminal facts and evidence, and voluntarily pleads guilty.

The defendant, Ma Mou, had no objection to the alleged criminal facts and evidence, and voluntarily pleaded guilty. The defendant, Ma Mou, also argued that the audit report lacked data, the hospital's supplies were not provided by me alone, some of the data did not belong to me, the calculated costs were questionable, and my profits were not as high as claimed.

The defense counsel, Liu Xiaoyu, argued that there is no objection to the charge of bribery but raised objections regarding the amount involved. The defendant, Ma Mou, pleaded guilty, confessed to all criminal facts truthfully, constituted a confession, and demonstrated meritorious conduct. He actively returned the illicit funds, is a first-time and occasional offender, showed good attitude in confessing guilt, and did not cause serious consequences, thus should be given a lighter punishment.

After trial, it was found that from 2013 to 2020, Beijing Demax Medical Technology Co., Ltd. (hereinafter referred to as "Demax Company," which was deregistered on June 15, 2021), Shijiazhuang Demax Medical Device Sales Co., Ltd. (hereinafter referred to as "Demax Medical," which was deregistered on August 6, 2017), Shijiazhuang Demax Trading Co., Ltd. (hereinafter referred to as "Demax Trading," which was deregistered on November 11, 2020), and the defendant entity Shanghai Yike Trading Company (hereinafter referred to as "Shanghai Yike") violated national regulations during the process of selling medical consumables to the East Campus Cardiovascular Internal Medicine Departments I and II of Hebei Medical University Second Hospital (hereinafter referred to as "Hebei No. 2 Hospital"). Through the direct responsible persons for medical consumable sales at Demax Company and Demax Medical, and the actual controllers of Demax Trading and Shanghai Yike, the defendant Ma Mou gave cash kickbacks to Li Moujun, then vice president of Hebei No. 2 Hospital, Wang Mouyi, director of the East Campus Cardiovascular Internal Medicine Department I, and Wu Mouli, director of the East Campus Cardiovascular Internal Medicine Department II, totaling RMB 14,033,302.

The specific facts are as follows: (Editor's note: Consistent with the prosecution, omitted)

After the case occurred, the defendant Ma Mou truthfully confessed to the criminal facts known by the supervisory authority and has voluntarily surrendered 20.02871 million yuan of illegal gains to the Wei County Supervisory Commission.

The aforementioned facts are substantiated by the following evidence submitted by the public prosecution in court and cross-examined during the trial:

1. Main Body Identity Evidence

1. Basic Information, Business License, and Household Registration of Shanghai某某Science Trading Firm and Ma某.

Business licenses, deregistration liquidation reports, deregistration approval notices, and other documentary evidence of某某 Trading Co., Ltd. (hereinafter referred to as某戊 Company), Beijing某某 Trading Co., Ltd. (hereinafter referred to as某丙 Company), and Shijiazhuang某某 Medical Device Sales Co., Ltd. (hereinafter referred to as某丁 Company).

3. The Second Hospital of Hebei Medical University (hereinafter referred to as XX Second Hospital) issued appointment documents, cadre task approval forms, and division of labor materials for Li Moujun, Wang Mouyi, and Wu Mouli.

2. Evidence of Unit Bribery

Evidence of the First Instance: Shanghai某某科Trade Merchant, 某戊Company, 某丙Company, and 某丁Company Bribing Li Jun, Deputy Dean of 某某Second Hospital, via Ma某 with RMB 6,743,400

The First Set: Evidence of Seeking Improper Benefits

1. Excerpt from the confession of Li Moujun, the bribe recipient

In June 2014, Ma came to the Catheterization Laboratory of the Cardiology Department at the Second Hospital of Hebei Medical University (hereinafter referred to as "XX Second Hospital") and approached me. He said that his company was representing Medtronic's stents and balloons, with authorization from the manufacturer for XX Second Hospital. The stents and balloons were products listed in the hospital’s system directory and could be directly selected for use. He also discussed the performance, price, and advantages of Medtronic stents. Having been previously familiar with Medtronic stents, I agreed to allow the Medtronic stents and balloons represented by Company B to be used in the Fourth Division of Cardiology. We also agreed on the kickback percentages: 5,000 yuan per Medtronic stent, 1,000 yuan per balloon if the unit price was above 4,000 yuan, and 800 yuan per balloon if the unit price was below 4,000 yuan.

Company A supplies medical consumables such as Medtronic stents to the Fourth Department of Cardiology. I lost count, so let's refer to the data recorded in the microcomputer system of the Second People's Hospital.

Beijing某某Trading Co., Ltd., Shijiazhuang某某Medical Device Sales Co., Ltd., Shijiazhuang某某Trading Co., Ltd., and Shanghai某某Science Trading Firm. The businesses of these four companies and Cardiology Department IV are all fully managed by Mr. Ma. He should be the manager of these four companies.

2. Testimony of Liu Suyun, Director of the Fourth Department of Cardiovascular Medicine at the East Campus of某某 Second Hospital, including procurement acceptance record books of medical device usage units, materials on usage conditions, and relevant documentary evidence issued by 某某 Second Hospital regarding the procurement amounts and quantities of Medtronic cardiac intervention products and Demax Medical cardiac intervention products used in the First, Second, and Fourth Departments of Internal Medicine.

The Second Group: Evidence of Giving Property to Li Moujun

1. Excerpt from the confession of Li Moujun, the bribe recipient

Among the medical consumables sold by Ma's company to the Fourth Department of Cardiology, the kickback for each Medtronic stent was 5,000 yuan. For balloons priced above 4,000 yuan each, the kickback was 1,000 yuan per unit; for those priced below 4,000 yuan, the kickback was 800 yuan per unit. There were no kickbacks for other medical consumable parts.

According to my calculations, from July 2014 to December 2018, I received a total of 6.7434 million yuan in kickbacks for Medtronic stents and Medtronic balloons. Ma gave me the kickback payments in cash. The kickbacks were usually packaged in brown paper document bags, file bags, or similar bags, all in 100-yuan denominations. After receiving the kickbacks, I used part of the money for expenses, and deposited part of it into bank accounts—mainly my own bank card, my wife Su Bianling's bank card, and my daughter Li Yalu’s bank card, which I manage and use. I usually went to the bank to deposit the cash myself, and the remainder was kept at home in cash.

2. Documentary evidence such as the transaction details of the bank cards involved in the case under the name of the defendant Ma Mou, the transaction details of the bank cards under the name of Li Moujun and his wife and daughter, the transaction details of Shijiazhuang XX Trading Co., Ltd. from China Minsheng Bank, and the transaction details of Shanghai XX Science Trading Firm from Industrial and Commercial Bank of China.

The Second Case: Evidence of Shanghai某某科Trade Merchant,某戊Company,某丙Company, and某丁Company Bribing Wang乙, Director of the First Department of Cardiovascular Medicine at the East Campus of某某Second Hospital, via Ma某 with RMB 664,400

The First Set: Evidence Proving the Pursuit of Improper Benefits

1. Excerpt from the confession of Wang Mouyi, the bribe recipient

From January 2019 to December 2020, the First Cardiology Department of the East Campus began extensive use of Medtronic stents and balloons. During this period, the department used 130 Medtronic stents, with a kickback of 5,000 yuan per stent, totaling 650,000 yuan in kickbacks. Additionally, 18 Medtronic balloons were used, with a kickback of 800 yuan per balloon, amounting to 14,400 yuan in kickbacks. Ma gave me a total of 664,400 yuan in medical supply kickbacks. Prior to 2019, Ma had not given me any kickbacks.

I don't know the name of Company B, but I only remember that he is a salesperson for Medtronic stents and balloons.

2. Medical device user units' procurement acceptance record books, usage situation materials, and relevant documentary evidence issued by the Second Hospital of某某regarding the procurement amounts and quantities of Medtronic cardiac interventional products and Demax Medical cardiac interventional products used in Internal Medicine Department One, Two, and Four.

The Second Group: Evidence of Giving Property to Wang Mouyi

1. Excerpt from the confession of Wang Mouyi, the bribe recipient

Beijing某某Trading Co., Ltd., Shijiazhuang某某Medical Device Sales Co., Ltd., Shijiazhuang某某Trading Co., Ltd., and Shanghai某某Technology Trading Firm

Cardiology Department I sold medical consumables, with a rebate of 5,000 yuan for each Medtronic stent and a rebate of 800 yuan for each Medtronic balloon.

After my calculation, from January 2019 to December 2020, I received a total of 664,400 yuan in kickbacks for Medtronic stents and Medtronic balloons. Ma gave me all the kickback payments in cash. Apart from using the kickback money for departmental expenses, I distributed the remaining kickbacks to the department’s doctors according to a proportional coefficient. I deposited my share of the funds into my personal Construction Bank and Industrial and Commercial Bank accounts at irregular intervals, which were used for daily expenses, purchasing insurance, and other expenditures.

2. Transaction records of the involved bank cards in the name of the defendant Ma Mou, transaction records of the bank cards in the name of Wang Mouyi, transaction records of Shijiazhuang XX Trading Co., Ltd. from China Minsheng Bank, transaction records of Shanghai XX Science Trading House from Industrial and Commercial Bank of China, and other documentary evidence.

Evidence of the Third Case: Shanghai某某科Trade Merchant, 某戊Company, 某丙Company, and 某丁Company Bribing Wu某利, Director of the Second Department of Cardiovascular Medicine at the East Campus of 某某Second Hospital, via Ma某, Amounting to RMB 6,625,502

The First Set: Evidence Proving the Pursuit of Improper Benefits

1. Excerpt from the confession of Wu Mouli, the bribe recipient

I met Ma during my work at the Fifth Cardiology Department of the Second Hospital of Hebei Medical University. At that time, he was responsible for deliveries and worked with Medtronic stents. In February 2013, after I became the director of the Second Cardiology Department at the East Campus, Ma came to my department and hoped we would use Medtronic stents, balloons, and Demax Medical cardiac interventional consumables. Ma told me there were different kickbacks for using Medtronic stents and balloons. In June 2013, after my department began performing surgeries, we started using Medtronic stents and balloons in coronary interventional treatments. We agreed on the kickback percentages: each stent had a kickback of 5,000 yuan, which decreased accordingly after the stent price reduction. Each balloon had a kickback of 800 yuan, and the kickback rate for Demax Medical products was 20%.

I don't know the name of Company B, but I know that it is the agent for Medtronic stents and balloons and Demax Medical cardiac interventional consumables.

2. Medical device user units' procurement acceptance record books, usage situation materials, and relevant documentary evidence provided by the Second Hospital of某某 regarding the procurement amounts and quantities of Medtronic cardiac interventional products and Demax Medical cardiac interventional products used in Internal Medicine Department One, Two, and Four.

The Second Group: Evidence of Giving Property to Wu Mouli

1. Excerpt from the confession of Wu Mouli, the bribe recipient

Beijing某某Trading Co., Ltd., Shijiazhuang某某Medical Device Sales Co., Ltd., Shijiazhuang某某Trading Co., Ltd., and Shanghai某某Science Trading Firm, the four companies selling medical consumables to the Second Cardiology Department, provided a rebate of 5,000 yuan for each stent. After the price reduction of the stents, the rebate amount decreased accordingly. The rebate for each balloon was 800 yuan, and the rebate percentage for Demax Medical's consumables was 20%.

According to my calculations, from July 2013 to December 2020, I received a total of 6.625502 million yuan in kickbacks for Medtronic stents, Medtronic balloons, and Demax Medical cardiac interventional medical consumables.

Ma would give me a kickback every two or three months, and the kickbacks were always given to me in cash. The kickback money was usually packaged in brown paper document bags, file bags, or similar bags, all in 100-yuan denominations of RMB. Apart from using the kickback money for departmental expenses, I distributed the remaining amount among the doctors in the department based on their work performance. I irregularly deposited my share of the kickbacks into my personal Bank of China and Ping An Bank accounts, which were used for daily expenses, purchasing insurance and financial products, transferring to fixed deposits, and other expenditures.

2. Documentary evidence such as the transaction details of the involved bank cards in Ma's name, the transaction details of the bank cards in Wu's name, the transaction details of Shijiazhuang XX Trading Co., Ltd. with China Minsheng Bank, and the transaction details of Shanghai XX Technology Trading House with Industrial and Commercial Bank of China.

III. Sentencing and Comprehensive Evidence

1. The Decision on Filing a Case and Notice, Application for Approval of Detention, and the Approval Decision for Detention issued by Handan Municipal Supervisory Commission and other related documents from the Wei County Supervisory Commission.

2. Ma's confession materials during the investigation, letter of repentance, Ma's voluntary submission of property registration form, and plea agreement.

3. Testimonies of witnesses Wang Moujia, Ma Mouying, and Wu Mouwei.

4. Ma's apprehension process, criminal record certificate, and audit report.

The above evidence was collected through legal procedures, is objectively true in content, mutually corroborative, forming a complete chain of evidence, and is hereby confirmed by this court.

The court holds that, in order to seek improper benefits, the defendant entity Shanghai [Name] Trade Firm bribed state functionaries, and the circumstances were serious. Its actions have constituted the crime of unit bribery. The defendant Ma [Name], as the actual controller of Shanghai [Name] Trade Firm, bore direct responsibility for the unit's act of bribery, and should be charged with the crime of unit bribery. The charge brought by the public prosecution authority is valid. The defendant entity Shanghai [Name] Trade Firm and the defendant Ma [Name] truthfully confessed all criminal facts, which constitutes an admission, and they may be given a lighter punishment. The defendant entity Shanghai [Name] Trade Firm and the defendant Ma [Name] pleaded guilty and accepted punishment, and according to law, may be treated leniently. Defendant Ma [Name] voluntarily returned the illegally obtained gains and actively paid the fine, and according to law, may be given a discretionary lighter punishment. The defense opinions related to this raised by the defense counsel are adopted by the court. Other defense opinions of the defense counsel do not conform to the ascertained facts, and thus are not adopted by the court. The acts of defendant Ma [Name] occurred before the implementation of the "Criminal Law Amendment (12)", and according to the principle of applying the old law unless the new law is more lenient, he will be sentenced according to the revised relevant provisions. Based on the criminal facts, nature, circumstances, and degree of harm to society in this case, and in accordance with Articles 393, 12, 30, 31, 52, 53, 67(3), and 64 of the Criminal Law of the People's Republic of China, and Article 15 of the Criminal Procedure Law of the People's Republic of China, the judgment is as follows:

1. The defendant entity, Shanghai某某科Trading Firm, is found guilty of unit bribery and is solely fined RMB 300,000 (already paid).

2. The defendant Ma was convicted of unit bribery, sentenced to 1 year and 10 months in prison, and fined RMB 200,000 (already paid).

(The term of imprisonment shall be calculated from the date of execution of the judgment. If the person was detained before the execution of the judgment, one day of detention shall be counted as one day of imprisonment, i.e., from December 6, 2023, to October 5, 2025.)

3. The illegal gains of 2,002,871 yuan renminbi confiscated from the defendant Ma shall be confiscated according to law and turned over to the state treasury.

If you do not accept this judgment, you may file an appeal with the Intermediate People's Court of Handan City, Hebei Province, either through this court or directly, within ten days from the second day of receiving the judgment. For a written appeal, one original and three copies of the appeal petition must be submitted.

Presiding Judge Guihai Li

Judge Liu Yuna

People's Juror Zhang Hailong

July 11, 2025

Clerk　　Li Hongshun