McKesson and Robbins was taken over in 1925 by Phillip Musica, who previously used Adelphia Pharmaceutical Manufacturing Company as a front for bootlegging operations.
Musica, a twice-convicted felon, used assumed names to conceal his true identity in taking control of the two companies: Frank D. Costa at Adelphia Pharmaceutical and F. Donald Coster at McKesson and Robbins.
McKesson and Robbins treasurer Julian Thompson discovered the distribution company was bogus.
The McKesson and Robbins scandal led to major corporate governance and auditing reforms.
The SEC required that public companies have audit committees of outside directors and that the appointment of auditors be approved by the shareholders.