China to try GSK-linked investigator in secret: family friends

Thu Jul 3, 2014 2:49am EDT
 
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SHANGHAI (Reuters) - The trial in China of a British corporate investigator and his American wife and business partner arrested a year ago after they did work for GlaxoSmithKline PLC will be closed to the public, two family friends with knowledge of the matter told Reuters Thursday.

The detention of Peter Humphrey and Yu Yingzeng has sent shockwaves through the foreign business community. For years, the community has relied on investigative firms such as the couple's Shanghai-based company ChinaWhys to better understand the Chinese business environment.

In April 2013, GSK employed ChinaWhys to investigate an ex-employee suspected of sending anonymous emails, including the circulation of an intimate video of former GSK China head Mark Reilly with his girlfriend, as well as emails containing allegations of widespread bribery at the British drugmaker.

Three months later, authorities detained Humphrey and Yu for illegally buying and selling private information. Chinese authorities have not openly made a link between GSK and the case against ChinaWhys.

The couple were subsequently arrested, which typically means the police believe they have enough evidence for the case to be brought to trial. They are being held in Shanghai, but it is not known in which court they will be tried.

U.S. consular officials had been informed on Wednesday when visiting Yu that they would not be able to attend the trial, and that the decision to keep the trial closed had been made on the grounds of privacy, according to the couple's family friends, who declined to be identified because of the apparent sensitivity of the case.

The trial date has also been pushed back a week to Aug. 7 from July 29, the people said.

The U.S. and British consulates declined to comment.

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The logo of GlaxoSmithKline (GSK) is seen on its office building in Shanghai in this July 12, 2013 file photo.  REUTERS/Aly Song/Files