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GSK corporate sleuth Peter Humphrey and wife appear in Shanghai court GSK investigator and wife appear in Shanghai court
(about 3 hours later)
A British man and his American wife have appeared in a Shanghai court in the first formal hearing after they were accused of illegally obtaining private information about Chinese citizens. A British man and his American wife have appeared in a court in Shanghai in the first formal hearing after they were accused of illegally obtaining private information about Chinese citizens.
Peter Humphrey, 58 – a coporate sleuth hired by GlaxoSmithKline – and his 61-year-old wife, Yu Yingzeng, have been detained since last July on suspicion of using illegal means to get the data. GSK's China office, which is currently the target of a separate corruption probe, was one of their last clients. Peter Humphrey, a 58-year-old investigator hired by GlaxoSmithKline – and Yu Yingzeng, 61, have been detained since July 2013 on suspicion of using illegal means to get the data. GSK's China office, which is the target of a separate corruption investigation, was one of their last clients.
The year-long case has sent chills through the country's foreign business community. And while proceedings at the Shanghaicourt on Friday were ostensibly open to the public, authorities only allowed family members and consular officials inside the courthouse. The court broadcast transcripts of the proceedings via its official feed on the microblog Sina Weibo. The year-long case has caused concern among the country's foreign business community. And while court proceedings on Friday were ostensibly open to the public, authorities only allowed family members and consular officials inside the courthouse. The court broadcast transcripts of the proceedings via its official feed on the microblog Sina Weibo.
Prosecutors accused Humphrey and Yu of illegally obtaining 256 items of information on Chinese citizens, including IDs, mobile phone numbers, and travel records for between 800 and 2,000 yuan (£77-£193) each, the court said. Prosecutors accused Humphrey and Yu of illegally obtaining 256 pieces of information on Chinese citizens, including IDs, mobile phone numbers and travel records. The couple paid between 800 and 2,000 yuan (£77-£193) for each piece of information, the court was told.
Humphrey, testifying first, accepted the charges but refused to comment on each one specifically, citing a lack of familiarity with Chinese law.Humphrey, testifying first, accepted the charges but refused to comment on each one specifically, citing a lack of familiarity with Chinese law.
He spent hours responding to highly-specific questions about his company's operations. The firm was registered in Hong Kong and Shanghai, he said. His clients were "large or medium-sized companies" operating in manufacturing and finance, as well as law firms, both foreign and Chinese. He conducted his investigations via internet searches, interviews, and site inspections. "The majority of our work is done using public information," he said, adding that the firm occasionally contracted third-party companies to track down private information on citizens. He spent hours responding to highly specific questions about his company's operations. The firm was registered in Hong Kong and Shanghai, he said. His clients were "large or medium-sized companies" operating in manufacturing and finance, as well as law firms, both foreign and Chinese. He conducted his investigations via internet searches, interviews, and site inspections. "The majority of our work is done using public information," he said, adding that the firm occasionally contracted third-party firms to track down private information on citizens.
Humphrey was a Reuters foreign correspondent for nearly two decades, and Yu was an accomplished accountant; they opened their Shanghai-based firm ChinaWhys in 2003. Last summer, GSK hired them to uncover the provenance of a sex tape showing the firm's then-China boss, Mark Reilly, having sex with his girlfriend in his Shanghai home. The video was sent to GSK executives along with a string of emails accusing the firm of mass-scale bribery. Humphrey was a Reuters foreign correspondent for nearly two decades, and Yu was an accomplished accountant; they opened their Shanghai-based firm ChinaWhys in 2003. Last summer, GSK hired them to uncover the provenance of a tape reportedly showing the firm's then-China boss, Mark Reilly, having sex with his girlfriend in his Shanghai home. The video was sent to GSK executives along with a string of emails accusing the firm of mass-scale bribery.
Harvey Humphrey, the couple's 19-year-old son, said in an interview before the trial that he was "cautiously optimistic" about its outcome. "If they did do something illegal, I assure you it wasn't intentional," he said. "I don't see what else [the government] can get out of holding them for longer." The 19-year-old son of Humphrey and Yu said in an interview before the trial that he was "cautiously optimistic" about its outcome. "If they did do something illegal, I assure you it wasn't intentional," said Harvey Humphrey. "I don't see what else [the government] can get out of holding them for longer."
Humphrey and Yu have been suffering from medical problems in detention, he said. Humphrey has arthritis, spinal problems and a hernia while Yu has joint and kidney problems. Yet Harvey said that despite the grim conditions, he has not seen any evidence of mistreatment, and both of his parents have befriended their warders. His parents have had medical problems while in detention, he said. Peter Humphrey has arthritis, spinal problems and a hernia while Yu has joint and kidney problems. Yet their son said that despite the grim conditions, he has not seen any evidence of mistreatment, and both of his parents have befriended their warders.
Many observers say that Humphrey and Yu were prudent, experienced businesspeople, and they were likely detained because their investigation tread on the toes of someone powerful. Humphrey's investigation centered on GSK's government relations officer, a well-connected Shanghai woman named Vivian Shi. She had left the company the previous December, and Reilly suspected her of being the whistleblower. Humphrey and Yu were detained soon after they completed their report. Many observers say that Humphrey and Yu were prudent, experienced businesspeople, and they were detained because it was likely that their investigation trod on the toes of someone powerful. Humphrey's inquiries centred on a GSK government relations officer, Vivian Shi. She had left the company the previous December, and Reilly suspected her of being the whistleblower. Humphrey and Yu were detained soon after they completed their report.
Harvey said that he blames GSK for his parents' situation, not the Chinese government. The drug maker, he said, told his parents that the whistleblower's allegations were untrue. "From the outside, it looks like deception to me," he said. "If they admitted the allegations were true in the beginning, my dad would have used a different style of investigation." Harvey Humphrey said that he blames GSK for his parents' situation, not the Chinese government. The pharmaceutical firm, he said, told his parents that the whistleblower's allegations were untrue. "From the outside, it looks like deception to me," he said. "If they admitted the allegations were true in the beginning, my dad would have used a different style of investigation."