Former Crooked Valeant Executive and Philidor CEO Charged with Fraud. Current CEO & CFO Next? | Pharmaguy's Insights Into Drug Industry News | Scoop.it

Gary Tanner, former executive, and Andrew Davenport, ex-CEO of Philidor, have been arrested and charged with fraud. Preet Bharara, US attorney for the Southern District of New York, has accused Tanner and Davenport of conducting “multi-million dollar fraud and kickback scheme” against Valeant.

The full complaint suggests that Tanner and Davenport created Philidor through Tanner’s relationship to Valeant, as the dominant sales channel for Valeant. Tanner allegedly hid his interests to Philidor from his superiors. Eventually the scheme allowed Tanner and Davenport to accrue an individual fortune of $10 million and $40 million, respectively.

“Today, we charge corporate fraud at Valeant Pharmaceuticals. Gary Tanner, a former Valeant executive, and Andrew Davenport, the CEO of Philidor, allegedly concocted a fraudulent scheme to illegally use Philidor as a vehicle for personal profit and self-dealing,” U.S. Attorney Bharara said in a statement. “Their alleged kickback scheme illegally converted Valeant shareholder money into their own personal nest eggs. As alleged, while purporting to be arms-length business counterparts, the two men were, in fact, partners in crime”.

The news, though adding further damage after a difficult month, could be worse for Valeant. There has been, as yet, no implication in their former CEO and CFO in the investigation for fraud.