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A former Valeant Pharmaceuticals executive and the one-time head of the Philidor Rx Services mail-order pharmacy were both sentenced to one year and one day in prison for using a secret kickback arrangement to defraud the drug maker of millions of dollars.

Earlier this year, a federal jury in Manhattan found Gary Tanner, the former Valeant executive, and Andrew Davenport, who had been the chief executive of the pharmacy, guilty on all of the charges, which included wire fraud and conspiracy to commit money laundering. Both men were also required to forfeit $9.7 million.


The sentencing comes three years after the drug maker became enmeshed in scandals over its pricing and accounting practices, which led to congressional hearings, a loss of confidence among investors, and a subsequent turnover in management and the board. The Philidor episode was particularly explosive, though, because Valeant failed to properly disclose its relationship with the pharmacy.

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