Two participants in the Valeant kickback plot who were accused of scheming to tie the two companies together in exchange for a $9.7 million kickback were recently convicted by a Manhattan federal jury.

Gary Tanner, a former manager at Valeant Pharmaceuticals International Inc., and Andrew Davenport, CEO of mail-order pharmacy Philidor Rx Services LLC, were convicted on all four counts against them: honest services wire fraud, honest services wire fraud conspiracy, money laundering conspiracy, and Travel Act conspiracy.

In 2015, Valeant’s $100 million-plus option to buy Philidor became public prompting Davenport to bribe Tanner; asking him to serve as an informant on negotiations of the deal in exchange for a kickback. Tanner agreed, working secretly to undercut his employer’s negotiating tactics and further efforts to sell its products through other outlets.

During the trial, prosecutors said that Tanner’s activities left Valeant with no choice but to move to buy Philidor Rx. Once the sale was complete, the men used anonymous shell companies to transfer the kickback money from Davenport to Tanner.

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If you think you may have lost money as a result of securities fraud or a scheme involving securities similar to the Valeant kickback plot, contact a qualified securities fraud attorney today.

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