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British GSK investigator on trial in China British GSK investigator on trial in China
(about 3 hours later)
A British investigator and his wife are being tried in China for illegally trafficking personal data.A British investigator and his wife are being tried in China for illegally trafficking personal data.
Peter Humphrey and his American wife Yu Yingzeng were arrested in August 2013.Peter Humphrey and his American wife Yu Yingzeng were arrested in August 2013.
They are accused of illegally obtaining Chinese citizens' personal information and selling it to China-based multinational corporations, including GlaxoSmithKline (GSK) China.They are accused of illegally obtaining Chinese citizens' personal information and selling it to China-based multinational corporations, including GlaxoSmithKline (GSK) China.
GSK China, which is being investigated for possible bribery, hired Mr Humphrey last year.GSK China, which is being investigated for possible bribery, hired Mr Humphrey last year.
The trial is taking place at the Number One Intermediate Court in Shanghai. Information about proceedings is being released on its official microblog.The trial is taking place at the Number One Intermediate Court in Shanghai. Information about proceedings is being released on its official microblog.
Prosecutors said the couple had illegally obtained more than 200 pieces of information, including phone records and household registration data, on individuals which they resold to clients.
"Generally speaking... I don't dispute (the prosecutor's indictment)," the official microblog quoted Mr Humphrey as telling the court."Generally speaking... I don't dispute (the prosecutor's indictment)," the official microblog quoted Mr Humphrey as telling the court.
Ahead of the trial Mr Humphrey, a former journalist, and his wife have been held at a detention centre in Shanghai. His son, Harry Humphrey, told the BBC last week that his parents appeared well. According to the transcript, he told the court the services his company supplied were aimed at "reducing risks, especially risks in regard to fraud and corruption".
"We would ask other consulting companies to help us and they could help us obtain the personal information of Chinese citizens," he reportedly told the court.
GSK probeGSK probe
Prosecutors say the couple on trial "illegally trafficked a huge amount of personal information on Chinese citizens". They obtained this information by "secret photography, infiltration or tailing after someone".
Chinese authorities have not made an explicit link between this case and the GSK probe.Chinese authorities have not made an explicit link between this case and the GSK probe.
The arrest of Mr Humphrey and his wife came weeks after he delivered an investigation report to GSK.The arrest of Mr Humphrey and his wife came weeks after he delivered an investigation report to GSK.
In January 2013, an email was sent to GSK's London-based CEO Andrew Witty containing a sex tape of GSK China's general manager Mark Reilly and his girlfriend. Early in 2013 an email was sent to GSK's London-based CEO Andrew Witty accusing GSK China's general manager Mark Reilly of being behind systematic corruption in the company's China operation.
The email accused Mr Reilly of being behind systematic corruption in the company's China operation. A sex tape featuring Mr Reilly and his girlfriend was later also sent.
Mr Humphrey's corporate investigations company, ChinaWhys, was asked to find out who had sent the email and how the video had been filmed.Mr Humphrey's corporate investigations company, ChinaWhys, was asked to find out who had sent the email and how the video had been filmed.
GSK suspected a former senior staff member, said to have top-level political connections, who has denied being the whistleblower.GSK suspected a former senior staff member, said to have top-level political connections, who has denied being the whistleblower.
In June, ChinaWhys delivered its report. Chinese authorities shortly afterwards opened a bribery investigation into GSK and then arrested Mr Humphrey and his wife.In June, ChinaWhys delivered its report. Chinese authorities shortly afterwards opened a bribery investigation into GSK and then arrested Mr Humphrey and his wife.
John Sudworth, BBC News, at the court in ShanghaiJohn Sudworth, BBC News, at the court in Shanghai
The court microblog feed gives the appearance of openness but it is, like the trial itself, under the strict control of the Communist Party. Much of the more intriguing aspects of the case will remain hidden.The court microblog feed gives the appearance of openness but it is, like the trial itself, under the strict control of the Communist Party. Much of the more intriguing aspects of the case will remain hidden.
For example, what about GSK's former manager, Vivian Shi, reported to have family connections to the top echelons of power? It was Ms Shi that GSK had asked Mr Humphrey to investigate, believing her to be author of the anonymous emails alleging corruption. She's denied being the whistle-blower but the court case is unlikely to make us any the wiser, either way.For example, what about GSK's former manager, Vivian Shi, reported to have family connections to the top echelons of power? It was Ms Shi that GSK had asked Mr Humphrey to investigate, believing her to be author of the anonymous emails alleging corruption. She's denied being the whistle-blower but the court case is unlikely to make us any the wiser, either way.
For the foreign business community the case is probably best simply seen as a reminder of the lack of independent judicial recourse when things go badly wrong, as well as a worrying sign that China may be tightening its scrutiny of corporate investigation firms - so crucial for anyone wanting to navigate this country's murky business environment.For the foreign business community the case is probably best simply seen as a reminder of the lack of independent judicial recourse when things go badly wrong, as well as a worrying sign that China may be tightening its scrutiny of corporate investigation firms - so crucial for anyone wanting to navigate this country's murky business environment.
GSK China remains embroiled in controversy over alleged systematic bribery of doctors.GSK China remains embroiled in controversy over alleged systematic bribery of doctors.
Mr Reilly is currently being investigated by Chinese authorities, as are at least two other senior GSK China executives.Mr Reilly is currently being investigated by Chinese authorities, as are at least two other senior GSK China executives.
He is alleged to have pressed his sales team to bribe doctors, hospital officials and health institutions to increase sales of GSK products.He is alleged to have pressed his sales team to bribe doctors, hospital officials and health institutions to increase sales of GSK products.
He is currently effectively detained in China and has made no recent comment.He is currently effectively detained in China and has made no recent comment.
GSK has described the allegations as "deeply concerning", saying it is "learning lessons from this situation" and is "determined to take all actions necessary as a result".GSK has described the allegations as "deeply concerning", saying it is "learning lessons from this situation" and is "determined to take all actions necessary as a result".
How case unfolded:How case unfolded: