A federal grand jury found former Valeant executive Gary Tanner and Andrew Davenport, the former chief executive officer of Philidor, guilty on multiple charges.
Both men made enormous sums of money through the fraud scheme, including wire fraud and conspiracy to commit money laundering, wrote Fortune.
Davenport grabbed about $40 million from Valeant’s acquisition of Philidor and Tanner took in about $10 million. Tanner managed Valeant’s relationship with Philidor, which sold the company’s drugs. He was also tasked with finding other mail-order pharmacies with which Valeant could do business, to prevent the drug manufacturer from relying too heavily on Philidor. He provided this scheme with the help of Davenport.
“We are, of course, disappointed in the verdict, but we look forward to addressing the many legal and evidentiary issues on appeal,” Tanner’s lawyer, Howard Shapiro, said in a statement. Davenport and his lawyer, Jonathan Rosen, declined to comment.