The former CEO of a now defunct Montgomery County mail-order pharmacy and a former manager of Valeant Pharmaceuticals International were found guilty of money laundering and fraud charges Tuesday by a Manhattan federal jury.
Andrew Davenport, who led Philidor Rx Services of Hatboro, and Gary Tanner, a manager at Valeant, were arrested in late 2016 and charged by the U.S. Attorney’s Office in New York with conspiring on a multimillion-dollar fraud and kickback scheme, writes John George in the Philadelphia Business Journal.
The Philidor-Valeant saga first became public in 2015, that eventually led to the two companies severing ties in a long-winding process the Business Journal examined closely.
During the trial earlier this month, the defendants’ lawyers reportedly argued that the dealings between Tanner and Davenport were not illegal, that Tanner’s role at Valeant was to help grow Philidor, and that the close relationship between the two businesses generated hundreds of millions of dollars in revenues for Valeant.
Philidor, which had offices in Hatboro and Horsham as well as Phoenix, closed in late 2015 after the two companies’ relationship became public and Valeant, based in Canada, later cut ties with the mail order pharmacy. The bulk of the prescriptions filled by Philidor were for Valeant medicines.
The closing, which resulted in the loss of nearly 300 jobs, came after Philidor was fending off accusations that the company instructed employees to falsify prescriptions so more orders were filled with Valeant Pharmaceuticals International’s brand-name products.
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