LAVAL, Que. – A former Valeant Pharmaceuticals International Inc. executive and the former CEO of Philidor RX Services LLC were found guilty of engaging in a multimillion-dollar kickback scheme by a jury in a U.S. court today.
The U.S. Attorney’s office for the southern district of New York says in a statement that a jury convicted Gary Tanner, former Valeant executive, and Andrew Davenport, former Philidor CEO, on four counts related to the scheme after a four-week trial.
Three of the charges carry a maximum penalty of up to 20 years in prison and one a maximum of five, though the judge has yet to sentence the defendants.
The pair was accused of arranging a $9.7-million kickback to Tanner from $133 million Quebec-based Valeant was going to pay the owners of Philidor for the option to purchase the mail-order pharmacy.
Philidor was set up at the start of 2013 with Valeant’s assistance and while in businesses at least 90 per cent of the drugs the pharmacy dispensed were Valeant-branded.
Valeant says in a statement that the company believes the jury’s verdict reflects the facts of the case.
U.S. Attorney Preet Bharara says in a statement that Tanner “sold his loyalty” to Davenport for $9.7 million.
Tanner used a Philidor email account under the alias Brian Wilson to communicate with Davenport and keep the scheme hidden from his employer.
“Our commitment to this prosecution shows that corruption of publicly traded companies will be rooted out and met with justice,” Bharara said.