Immucor CEO to step aside during criminal investigation

<p>Immucor Inc.'s president and chief executive is under criminal investigation for alleged improper payments to a doctor by a subsidiary he once headed, the maker of blood-testing equipment said Tuesday.</p><p>Gioacchino De Chirico will step aside as CEO during the probe by prosecutors in Milan and an internal company investigation, but will remain as president. Board chairman Edward L. Gallup will serve as interim CEO, the company said.</p><p>Immucor said De Chirico and the Italian subsidiary he once headed are the subject of a criminal investigation in Italy into alleged improper payments to a physician in exchange for business from his hospital. De Chirico formerly served as president of the Italian unit.</p><p>Shares of Immucor plunged on the news, sliding 13.6 percent, or $4.14, to close at $26.28 on almost 10 times its normal volume in trading on the Nasdaq Stock Market.</p><p>Robert W. Baird & Co. analyst Aaron Geist to lower his rating on Immucor to "Neutral" from "Outperform," saying the news will likely provoke regulatory action and an audit of the company.</p><p>An internal investigation found that Immucor paid the physician about $17,140 for serving as the organizer and chairman of an October 2003 convention sponsored by Immucor's subsidiary. The invoice for payment, however, did not properly identify the physician or the nature of his work, a violation of the Foreign Corrupt Practices Act, Immucor said.</p><p>The company said it is fully cooperating with the investigation while it continues its internal probe, and that its board is taking steps to strengthen financial controls in European operations.</p><p>___</p><p>On the Net:</p><p>HASH(0x28656b4)</p>

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