Showing posts with label Indictment. Show all posts
Showing posts with label Indictment. Show all posts

Friday, January 25, 2013

Feds indict 3 in pharmaceutical sales conspiracy

A Texas trio ran a $60 million drug operation in Nashville that sold thousands of pounds of unregulated pharmaceuticals to independent pharmacies across the state, according to a federal indictment announced Thursday.
For about three years, according to the U.S. attorney’s office in Nashville, a couple and an associate from Houston moved large quantities of discounted prescription drugs from street dealers in New York City and Miami through a sophisticated distribution system they used to dupe pharmacies into buying the products.
The aim of the “drug diversion” scheme was to make a handsome profit on unregulated medications. The three Texans portrayed the operation as a wholesaler, authorities say.
The federal investigation led to grand jury indictments of Charles Edwards, 51; Brenda Edwards, 42; and Jerrod Smith, 43, all from the Houston area. None of the three could be reached for comment.
The company the three allegedly operated, Cumberland Distribution, used warehouses in Nashville to sort and relabel drugs to make them appear as if they had been purchased legally, according to the indictment.
Authorities further allege the defendants fabricated documents they gave to pharmacy customers, who received at least 3,600 pounds of pharmaceuticals.
The transactions, which persisted for nearly three years ending in August 2009, moved more than $58 million in pharmaceuticals, resulting in a $14 million profit for Cumberland, prosecutors say.
Jerry Martin, U.S. attorney for the Middle District of Tennessee, called the scheme “a grave threat to the public.” He said some of the unregulated drugs could have been contaminated, expired or otherwise mismanaged.
Martin would not comment about whether the unregulated drugs had harmed any consumers.
The indictment paints a picture of a sophisticated, multilayered supply chain in which products traversed the Southeast and Eastern Seaboard with the look and feel of a credible business.
Packages containing drug products — obtained from people with legitimate prescriptions — were shuttled between Minnesota, Nashville, New York City, Miami and Arkansas. The indictment did not spell out how that happened.
Large-sum wire transfers, sometimes exceeding $100,000, were sent from American, Canadian and Mexican banks to pay people federal officials described as “street collectors.”
The U.S. Food and Drug Administration regulates the wholesale drug market, and the agency is tasked with rooting out counterfeit and improperly labeled medications. Federal law stipulates that only state-licensed entities can possess and sell prescription drugs.

Longtime problem

Since the late 1980s, federal regulators have been combating a practice known as “drug diversion,” the buying and selling of unregulated pharmaceutical products. It is nearly impossible to determine whether such drugs have been altered or stored improperly, according to federal prosecutors.
The three defendants face charges of conspiracy, obstruction of justice and money laundering.
If convicted, each could go to jail for decades and face hundreds of thousands of dollars in fines.
According to public records, Charles Edwards has a criminal record in Texas, including convictions from more than a decade ago for aggravated sexual assault and indecency with a child. The other two defendants had no criminal background.
Reach Bobby Allyn at 615-726-5990 orballyn@tennessean.com.
Source found here


Tuesday, September 4, 2012

Kentucky: Pain Clinic Owners and Doctors Charged in Prescription Drug Conspiracies

August 17, 2012; U.S. Attorney; Eastern District of Kentucky
Local and Out of State Pain Clinic Owners and Doctors Charged in Prescription Drug Conspiracies External link
PIKEVILLE-Between today and late Thursday afternoon, five indictments have been unsealed charging 22 defendants, including five pain clinic owners and six doctors, with offenses related to prescription drugs, money laundering, and health care fraud.

Friday, June 29, 2012

Canadian Operator of Internet Drug Outlet Indicted for Distribution of Fake Drugs to US Consumers



Andrew J. Strempler, a Canadian citizen, was arrested by United States officials in Florida and faces charges relating to his operation of a Web site selling drug products to US residents including distribution of counterfeit and non-Food and Drug Administration (FDA)-approved drugs. “According to the indictment, from around January 2005 through June 9, 2006, Strempler and his co-conspirators unlawfully enriched themselves by selling prescription drugs to individuals in the United States, falsely representing that RxNorth was selling safe prescription drugs in compliance with regulations in Canada, the United Kingdom and/or the United States. The indictment further alleges that Strempler obtained the prescription drugs from various other source countries without properly ensuring the safety or authenticity of the drugs. In fact, the indictment alleges that some of the drugs sold by Strempler included counterfeit drugs,” indicates a press release from the US Attorney’s Office, Southern District of Florida. Strempler faces one count of conspiracy to commit mail fraud and wire fraud, in violation of Title 18, US Code, Section 1349, and two counts of mail fraud, in violation of Title 18, US Code, Section 1341. The government is also seeking forfeiture of $95 million.

Wifredo A. Ferrer, US attorney for the Southern District of Florida stated, “FDA regulations are designed to promote and ensure the safety and integrity of prescription drugs sold and used in the United States. The US Attorney’s Office is committed to assisting the FDA enforce these regulations to protect American consumers from unsafe, adulterated and counterfeit drugs.” David W. Bourne, special agent in charge, FDA, Office of Criminal Investigation (OCI), Miami Field Office, stressed that the FDA OCI is committed to “aggressively pursuing individuals” who seek to sell counterfeit, adulterated, and misbranded drug products to US consumers via the Internet. Strempler appeared in federal court on June 14, 2012, before US Magistrate Judge John O’Sullivan. If convicted, Strempler faces a possible maximum statutory sentence of up to 20 years in prison on each count.

Additional details about the charges against Strempler are available in the US Attorney’s Office
press release. The indictment (PDF) is available for download from the Department of Justice Web site. The press release notes that an indictment is only an accusation and a defendant is presumed innocent until proven guilty.