China arrests two foreign fraud investigators: diplomats

 China arrests two foreign fraud investigators: diplomats
The detention by Chinese authorities of a British corporate investigator and his American wife in the wake of a corruption probe into pharmaceutical giant GlaxoSmithKline has had a chilling effect on other risk consultants working in China.

SHANGHAI - China has formally arrested a husband-and-wife team of fraud investigators, one British and one American, diplomats said Thursday, whose firm did work for GlaxoSmithKline (GSK) which is facing a bribery probe.

Police had arrested Peter Humphrey, a British national, and Yu Yingzeng, a naturalised American citizen, diplomats from the two countries told AFP.

Humphrey is the founder of risk advisory firm ChinaWhys while Yu, a certified fraud examiner, served as general manager.

Diplomats declined to describe the charges.

China has detained four GSK executives for allegedly masterminding a scheme to funnel bribes to doctors in return for buying its products.

A statement by family members to The Wall Street Journal said the two were suspected of breaking Chinese laws related to purchasing personal information.

"We only know that Ying and Peter did investigative work on corruption within foreign companies," said the statement to the Wall Street Journal.

"As corruption is high on the schedule of China's government, the incarceration of Ying and Peter seems to be contradictory to China's policy in itself," it said.

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