Former Valeant, Philidor execs charged in alleged fraud scheme

Pills and capsules. Photo by stefanphotozemun/Shutterstock

NEW YORK, Nov. 18 (UPI) — Two former, high-ranking, pharmaceutical-company officials were charged for their alleged roles in a multi-million dollar fraud and kickback scheme, federal prosecutors in New York said Thursday.

Preet Bharara, United States Attorney for the Southern District of New York, announced the arrests of Gary Tanner, who was an executive at Valeant Pharmaceuticals International Inc., and Andrew Davenport, former chief executive officer of the now-defunct Philidor Rx Services.

“Gary Tanner, the defendant, used his position of trust at Valeant to not only promote Philidor, but to resist efforts by Valeant to [diversify] its [fulfillment] program so that it not become overly dependent on Philidor,” Bharara’s complaint said.

The Wall Street Journal said Davenport is accused of paying Tanner $10 million in kickbacks in exchange for his promotion of Philidor’s business, a practice that is believed to have netted Davenport more than $40 million.

Valeant’s sales and profits have plunged since Philidor closed a year ago, Forbes reported.

“The counts issued today include allegations that the charged parties engaged in actions to defraud Valeant as a company,” the corporation said in a statement. “Valeant continues to cooperate with all relevant authorities in this matter.”

The investigation was initially disclosed to the public in August.


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