A former Valeant executive has been charged and arrested for allegedly defrauding the company of millions by discouraging business with other pharmacies besides Philidor, and convincing it to agree to an option to purchase the specialty pharmacy.

Gary Tanner faces fraud charges for engaging in a kickback scheme with Andrew Davenport, the former chief executive of Philidor, to receive $10 million after Valeant acquired an option to buy Philidor for a total cost of $300 million.

Valeant said its former CEO Michael Pearson and CFO Howard Schiller have not been charged in connection to the fraud. Valeant executives had raised concerns about Tanner’s financial ties to Philidor after he asked for approval to lease the pharmacy.