Merck Subsidiary Gets First DOJ National Security Declination (1)

A subsidiary of biopharma giant Merck KGaA received the first-ever declination from the Justice Department’s National Security Division, after disclosing an employee’s scheme to export nearly $14 million worth of cocaine, fentanyl, and other substances to Chinese labs.

The Massachusetts-based chemical producer Sigma-Aldrich, which is owned by the German multinational Merck, had potential liability for the fraudulent sales, but received historic leniency from NSD due to its speedy disclosure—within a week of hiring outside counsel—and proactive cooperation, the department said in a declination letter released Wednesday.

The former Sigma-Aldrich salesman and his co-conspirator have pleaded guilty to wire fraud in ...