This page has been archived and commenting is disabled.
Is This Valeant's "Enron" Org Chart?
Back in December 2001, Enron made history when it became the biggest for its time corporate bankruptcy in history, wiping out millions of shareholders after its market cap, until recently in the tens of billions, promptly hit zero following revelations of massive fraud, enabled by the now defunct auditor Arthur Anderson, and facilitated by the company's massively complex Special Purpose Entities which are summarized in Appendix D beginning on Page 372 of the infamous Enron whistleblower's book, and shown in the org chart below.
Fast forward to today, when another company was scrambling to prove to investors, skeptics, and regulators, that it is not merely a "biotech Enron" in sheep's clothing, when it released a 90-page presentation in which it summarily denied all allegations of fraud and wrongdoing, and whatever it could not decline, it merely punted to its lawyers or its outside counsel, even as it hinted at taking legal action against short-seller Citron, which revealed all its dirty laundry to the world and led to a 50% plunge in the stock price.
And yet, several press release denials, and one conference call later, few still understand what precisely is the relationship between Valeant and its various org charts.
So here, courtesy of Goldman, is a chart attempting to lay out all of Valeant's numerous, and convoluted, relationships with its specialty pharmacy networks. As more data emerges, expect more branches and entities to be added to the chart.
If the Valeant fiasco evaporates and the company is found to have done nothing wrong, this chart will be promptly forgotten. If, however, the government decides to crackdown on Valeant, and ends up wiping out the company, the above chart will be known as nothing less than the first draft of Valeant's "Enron" orgchart.
»
- 22681 reads
- Printer-friendly version
- Send to friend
- advertisements -
...because The Committee knows best what price companies should charge for their products.
Send'em to the "Farm."
I still look at the Enron Org chart and go "meh" I've got one hanging on the wall in my office right now -- more than 200 subs.
Then again -- mine is for tax aversion, and Enrons was hiding liabilities.
I'd bet the FED/Treasury have quite the "Enron" org chart as well, if their machinations were ever laid bare.
It would make sense that this decade's Enron is in Big Pharma; the whole industry is scandalous.
Every time I think back on Enron I can't help but to laugh when I think of Ken Lay - remember him? He's the one that had the foresight to drop dead before they could hang him by his balls. LOL
I, and a lot of folks in Aspen, don't believe Kenny Boy is really dead.
Awfully convienient!!!!
+1 The Bush's "spirited" him away to South America, where all good criminals go to hide from their misdeeds.
this is a stupid comparison, totally different situations, VRX's numbers are good, they were just trying to drive sales through specialty pharma, Enron lied about everything, money was complete fiction
If by now no one knows what exactly Valeant does or what it's relationships with other entities is or even who the entities are....it's fraud.
Valeant screwed the pooch. I don't need an org chart to know this smells like shit. A fat rhinoceros shit.
Valeant seems to be missing Enron's circularity.
missing Enron's circularity...
Give it time. Notice the pending lawsuits, acquisition subsequent to permit denial, familial ownership bonds, and a 50% drop in value. This appears to be the first lap of a rather long race.
I still think something should be said for the way the whole thing seemed to be started from a previous donor to hrc's potus aspirations that for whatever reason, developed second thoughts on continuing his financial support.
jmo.
This is just another opportunity for the regulators and JustUS department to take bribes and high paying jobs in return for looking the other way. In other words, business as usual on Fraud street and Washington, District of Criminals.
http://brontecapital.blogspot.com/2015/10/some-comments-on-valeant-confe...
This is a good read.
Also this:
https://boards.4chan.org/biz/thread/933253
All of these specialty Pharms are just Valeant fronts used to pimp product and scam the insurance companies.
>Valeant Pharmaceuticals alleged with Enron-like fraud
>Used to work at one of the Pharmacies briefly
>Valeant lying through their teeth
>Executives were all Valeant employees
>Was told not to ever say Valeant
>Executives were all connected and allowed nobody else into leadership
>MFW this is the next Enron and I was part of it for a bit
I was at Philidor/R+O/SafeRX and the others. Valeant is claiming they are separate entities to disparage the fraud claims but they were all pretty much ran from the same place.
>Establish main distribution centers
>Call centers full of hundreds of people in unmarked building
>Hire tons of minorites and immigrants
>Brutal work hours with no flexibility
>Run different drugs through certain pharmacies to get insurances to pay
>Insurances still wouldn't pay
>Established multiple physical buildings to get drugs across state lines
>Run insurances through different "Stores" to get them to pay better
>Dispensed from what state regulations would allow.
Don't many companies follow the Eron model these days?
Cook the books and if your too big to fail you get bailed out by the government.
Same plan as before but largerfail next time. Some people make enourmous anounts of money with the fail and bailout.
"Another Philidor story:
I went to a high-end dermatologist office, but just for a basic checkup. She prescribed an acne cream I didn't really need, Retin-A, and gave me the Philidor card you posted above, saying it would be easier. It was a pushy sales process and I remember thinking that she must love her sales rep.
I filled the first prescription via mail, paid no copay and after looking at my explanation of benefits, see that they charged Humana $770, of which they paid the remainder after my $45 copay. The copay showed up towards my out-of-pocket max even though I hadn't paid it.
28 days later they call me about a refill, offering to waive the copay again. I had used maybe 25% of the first prescription and didn't need any. When I did need one, I called Philidor, and they said they would call me back. They called later that day, offered to waive the copay again, and sent it. Looking at the explanation of benefits, my second prescription was filled by SAFERX PHARMACY out of New jersey. (It shipped from PA and arrived just like the first one from Philidor) Again my $45 copay was added to my out-of-pocket maximum. I live in Texas for what its worth"
So, they basically pay the co-pay and charge the insurance company for unecessary refills. These dummy pharmacies are clearly under control of Philidor who is acting on behalf of Valeant.
How is this not fraud?
If you are wondering why your hrealth insurance is so expensive, here's one reason....