W. Carl Reichel

Executive looking out window

Photo Credit: Getty/Tom Merton

The accused: W. Carl Reichel, former executive at Warner Chilcott, a subsidiary of Allergan

Warner Chillcot logo

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.

W. Carl Reichel

Suggested Articles

A federal judge in Maryland has vacated CMS' 2019 rule that would require Affordable Care Act insurers to bill separately for abortions.

A lawsuit filed against Teladoc accuses the company of engaging a third party to sell telehealth subscriptions to consumers without their consent.

Health Catalyst plans to acquire Healthfinch for $40 million in cash and shares. Here's why the data and analytics company thinks it's a good deal.