United States: Ex-Valeant executive, ex-pharmacy CEO charged for fraud scheme

Author(s): Nate Raymond | Date: November 17, 2016 | Language: English
Source: http://www.reuters.com/ | URL: https://goo.gl/qFXHsx | Type: Text

A former Valeant Pharmaceuticals International Inc (VRX.TO) executive and the former CEO of mail order pharmacy Philidor Rx Services were arrested on Thursday on charges that they engaged in a multimillion-dollar fraud and kickback scheme.
Federal prosecutors in Manhattan accused Gary Tanner, a ex-senior Valeant director, of secretly working with former Philidor Chief Executive Officer Andrew Davenport to promote the specialty pharmacy’s business within the Canadian drugmaker.
The scheme culminated in Valeant agreeing to pay $100 million for the right to buy now-defunct Philidor, resulting in Davenport earning $40 million, $10 million of which he covertly kicked back to Tanner, prosecutors said.
The charges came amid what prosecutors said was an ongoing probe of Laval, Quebec-based Valeant, which has been the subject of a number of recent investigations related to Philidor, including by congressional panels and the U.S. Securities and Commission.

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