Valeant Defrauded in Philidor Kickback Scheme, U.S. Says

Ex-Philidor CEO, Valeant manager arrested Thursday morning
Valeant’s Tanner took $10 million, hid links from bosses

Fraud Charges for Former Valeant, Philidor Executives

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Christian Berthelsen, Jared S Hopkins, and Caroline Chen

November 17, 2016 at 2:40 PM UTC

Updated on

November 17, 2016 at 10:44 PM UTC

This article is for subscribers only.

Valeant Pharmaceuticals International Inc. was the victim of a multimillion-dollar fraud by an executive who engaged in a hidden kickback scheme with the chief executive of a mail-order pharmacy company that sold its drugs, federal officials said.

Former Valeant executive Gary Tanner and Andrew Davenport, who ran Philidor Rx Services LLC, were arrested early Thursday in Phoenix and Philadelphia and charged with fraud and money laundering.