Andrew Davenport, the former CEO of Philidor Rx Services (a mail order pharmacy) and former Valeant executive, Gary Tanner were arrested for a multimillion dollar scheme in helping customers get insurance coverage for higher priced Valrant drugs instead if cheaper ones. They’ve acquired over $300 million dollars and Tamner and Davenport used their shares to pay off debt, for homes, amd luxury items. They used secret email accounts and aliases to comunicate and they thought they were going to have a happy ending, riding off into the sunset, but that is clearly not the case now.
Key Takeaways:
- Two executives from the Valeant drug company were arrested and charged with concocting a massive fraud scheme
- The two men illegally converted Valeant shareholders’ money into their own personal nest eggs
- Since the incident it is said that Valeant’s stock has crashed by 90%. The two men were said to have stolen over 40 million dollars from Valeant shareholders
“Valeant has become the focal point of anger from lawmakers and consumer groups over the dramatic drug price hikes at some pharmaceutical firms. Last year, federal prosecutors started investigating the way Valeant prices and distributes its drugs.”
http://money.cnn.com/2016/11/17/investing/valeant-execs-arrested-fraud-philidor/index.html
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