Head of Business Development · Valeant Pharmaceuticals International
A Valeant executive managed his company's relationship with a specialty pharmacy while secretly holding a multi-million-dollar personal stake in that same pharmacy.
An executive managing a company's relationship with an outside vendor held an undisclosed personal financial interest in that vendor — and negotiated terms beneficial to the vendor without disclosing the conflict.
Gary Tanner was Head of Business Development at Valeant Pharmaceuticals, where he managed the company's relationship with Philidor Rx Services, a specialty pharmacy network. According to his 2019 federal conviction, Tanner secretly held a financial interest valued at approximately $9.7 million in Philidor — the very company he was overseeing on Valeant's behalf. He worked to secure an exclusive and lucrative arrangement between Valeant and Philidor while personally standing to gain from Philidor's success. He was convicted of wire fraud and money laundering.
Tanner was responsible at Valeant for managing and expanding the company's relationship with Philidor, a specialty pharmacy that filled Valeant prescriptions and maximized reimbursements.
According to court findings, Tanner simultaneously held a financial interest in Philidor — structured through an intermediary to obscure his ownership — while negotiating and managing the terms of the Valeant-Philidor relationship.
He used his position to help secure an exclusive arrangement that enriched Philidor and, through his undisclosed interest, enriched himself.
Neither Valeant's management nor its board was disclosed of Tanner's financial stake in the company he was overseeing on the firm's behalf.
An executive managing a company's relationship with an outside vendor held an undisclosed personal financial interest in that vendor — and negotiated terms beneficial to the vendor without disclosing the conflict.
This case turns entirely on a single undisclosed relationship: an executive with management authority over an external business relationship had a personal financial stake in the counterparty. An annual conflict-of-interest disclosure process that requires executives to disclose financial interests in all current and prospective business partners would flag exactly this structure.
ConflictCheck does not claim it would have definitively prevented any specific historical fraud. The purpose of this section is to illustrate the type of relationship conflict present in each case and how structured disclosure processes address that category of risk.
Tanner was convicted in February 2019 on charges of wire fraud and money laundering. He was sentenced to 12 months of home confinement and ordered to forfeit $9.7 million. Philidor's CEO, Andrew Davenport, was also convicted in connection with the same scheme.
Every case in this library began with a relationship that existed — undisclosed — before anyone was harmed. ConflictCheck helps map those relationships across your organization.