Former Valeant executive, ex-Philidor CEO face charges in alleged fraud scheme
MONTREAL — U.S. prosecutors have charged a former executive with Valeant Pharmaceuticals and the head of a defunct U.S. mail-order pharmacy with conspiring to defraud the Quebec-based drug giant through a multimillion-dollar kickback scheme.
The U.S. Attorney’s Office for the Southern District of New York said Thursday that Gary Tanner, 39, a former executive at Valeant Pharmaceuticals International Inc. (TSX:VRX), and Andrew Davenport, 48, the former CEO of Philidor Rx Services, were arrested.
The men each face four charges, including wire fraud, conspiracy to commit wire fraud and conspiracy to commit money laundering.
“Their alleged kickback scheme illegally converted Valeant shareholder money into their own personal nest eggs,” U.S. attorney Preet Bharara said in a statement. “As alleged, while purporting to be arms-length business counterparts, the two men were, in fact, partners in crime.”