Photo Credit: Getty/Tom Merton
The accused: W. Carl Reichel, former executive at Warner Chilcott, a subsidiary of Allergan
The place: Rockaway, New Jersey
The charges: The Department of Justice charged the pharmaceutical executive with fraud in November 2015, alleging that Reichel conspired to pay kickbacks to physicians in exchange for prescribing the company’s drugs.
Reichel’s indictment included allegations he wined and dined doctors with expensive dinners and other perks to entice them to prescribe the medications.
Reichel also hired sales representatives that were given little-to-no training on healthcare laws and failed to emphasize the importance of compliance with such statutes. Reichel headed up Warner Chilcott’s pharmaceuticals from 2009 to 2011. The company was later purchased by Allergan in 2013.
The outcome: Warner Chilcott agreed to pay $125 million to deal with criminal and civil liabilities for marketing practices and pleaded guilty to a felony charge of healthcare fraud.
Allergan said it complied fully with the DOJ’s investigation. Reichel pleaded not guilty to the charges in court, and was acquitted in June.