Justice Department Dismantles Fake Online Pharmacy Conspiracies & Convicts 9
On March 27, the US Department of Justice announced the sentencing of 9 people involved in distinct but interrelated fake online pharmacy conspiracies. The ringleaders were sentenced to 4-5 years apiece, while other members of the broad organizations got less jail time or probation. All told, the defendants forfeited more than $94 million in profits. UPS & FedEx shipping records were used as evidence in this case.
The Department of Justice (DOJ) has concluded the successful prosecution of two different fake Internet pharmacy conspiracies. As they describe it, “these convictions were the result of a lengthy investigation by the Drug Enforcement Administration, San Francisco Field Division’s Financial Investigative Team. The prosecution is part of the Northern District of California United States Attorney’s Office’s Health Care Fraud program and was initiated as an investigation with the Organized Crime and Drug Enforcement Task Force. Substantial assistance was provided by the North Carolina Board of Pharmacy. Assistant United States Attorneys Kirstin Ault, Thomas Stevens, and Tracie Brown, with assistance from Denise Oki, Maryam Beros, Rawaty Yim, and Rayneisha Booth, prosecuted this case on behalf of the United States.”
Pitcairn Internet Pharmacy
Michael Arnold, founder of Pitcairn Internet Pharmacy was given a 5 year jail term for his role in distributing controlled substances and prescription drugs through a maze of illegal Internet pharmacy websites. From 2003-2007, he earned more than $69 million via websites such as ezdietpills dot net, pillsavings dot com, and doctorrefill dot net. Arnold used accounts in several countries including Canada, Switzerland, and the Netherlands to launder profits from his illegal drug sales. In addition to his jail term, he has been ordered to forfeit the $69 million in profits from his fake online pharmacy business, reports the DOJ.
SafeScripts/PharmacyUSA
Christopher Napoli, the founder of SafeScripts (also known as PharmacyUSA) was sentenced to 4 years in jail and required to forfeit almost $25 million in profits from his illicit online pharmacy business. Napoli ran his fake Internet pharmacies from November 2004 to December 2006. During that time, Safescripts sold more than 13 million doses of controlled substances. Napoli’s Safescripts operation was rather sophisticated, paying affiliates in several foreign countries to market his drugs, and utilizing a call center in the Dominican Republic to handle customer calls, according to the sentencing document.
On March 27, the US Department of Justice announced the sentencing of 9 people involved in distinct but interrelated fake online pharmacy conspiracies. The ringleaders were sentenced to 4-5 years apiece, while other members of the broad organizations got less jail time or probation. All told, the defendants forfeited more than $94 million in profits. UPS & FedEx shipping records were used as evidence in this case.
The Department of Justice (DOJ) has concluded the successful prosecution of two different fake Internet pharmacy conspiracies. As they describe it, “these convictions were the result of a lengthy investigation by the Drug Enforcement Administration, San Francisco Field Division’s Financial Investigative Team. The prosecution is part of the Northern District of California United States Attorney’s Office’s Health Care Fraud program and was initiated as an investigation with the Organized Crime and Drug Enforcement Task Force. Substantial assistance was provided by the North Carolina Board of Pharmacy. Assistant United States Attorneys Kirstin Ault, Thomas Stevens, and Tracie Brown, with assistance from Denise Oki, Maryam Beros, Rawaty Yim, and Rayneisha Booth, prosecuted this case on behalf of the United States.”
Pitcairn Internet Pharmacy
Michael Arnold, founder of Pitcairn Internet Pharmacy was given a 5 year jail term for his role in distributing controlled substances and prescription drugs through a maze of illegal Internet pharmacy websites. From 2003-2007, he earned more than $69 million via websites such as ezdietpills dot net, pillsavings dot com, and doctorrefill dot net. Arnold used accounts in several countries including Canada, Switzerland, and the Netherlands to launder profits from his illegal drug sales. In addition to his jail term, he has been ordered to forfeit the $69 million in profits from his fake online pharmacy business, reports the DOJ.
SafeScripts/PharmacyUSA
Christopher Napoli, the founder of SafeScripts (also known as PharmacyUSA) was sentenced to 4 years in jail and required to forfeit almost $25 million in profits from his illicit online pharmacy business. Napoli ran his fake Internet pharmacies from November 2004 to December 2006. During that time, Safescripts sold more than 13 million doses of controlled substances. Napoli’s Safescripts operation was rather sophisticated, paying affiliates in several foreign countries to market his drugs, and utilizing a call center in the Dominican Republic to handle customer calls, according to the sentencing document.
The DOJ press release goes on to describe 3 other men who worked for Napoli that were sentenced in the same conspiracy. Daniel DJ Johnson worked as Napoli’s software developer for the Safescripts online operation. He provided support of the day-to-day operations and developed the hardware and software that processed the Internet drug orders. Johnson was sentenced to 3 years in jail and required to forfeit about $835,500 in illegal profits.
Joseph Carozza was the physician hired by Napoli to approve the customer drug applications that came into Safescripts websites. Trial evidence showed that Carozza once approved more than 12,000 drug orders in a single day. He was sentenced to 2 ½ years in jail and ordered to forfeit about $400,00 in profits from his work for SafeScripts.
Jeffery Entel operated the SafeScripts call center in the Dominican Republic. His business, Grupo Call Center, conducted outbound sales calls on behalf of SafeScripts. He was sentenced to a year and a month in jail and ordered to pay almost $4 million in fines.
According the DOJ, evidence presented during the trial demonstrated that more than 90% of the drugs sold by Pitcairn Internet Pharmacies and Safescripts were dangerous controlled substances. The drugs were primarily diet pills, such as phentermine and didrex, and anti-anxiety drugs known as benzodiazepenes, such as Xanax, Valium and clonazepam. All of the drugs they offered for sale are potentially addictive and could be dangerous for persons not under proper medical supervision.
Kwic Fill and Brick & Mortar Pharmacies
Both Arnold and Napoli’s fake Internet pharmacies relied on actual brick and mortar pharmacies located in the United States to fulfill their customer orders. Kwic Fill, a brick and mortar pharmacy operating in Fayetteville, North Carolina filled drugs orders for both Pitcairn Internet Pharmacies and SafeScripts, among others. It’s owner, Jeffery Herholz, received 2 years in prison for his part in distributing prescription drugs without a valid prescription. He was also ordered to pay almost $4 million in fines. Additionally, a Kwic Fill pharmacist was also convicted in the case, and sentenced to 4 years probation. Darrell Creque was also required to forfeit $23,865, reports the DOJ.
The DOJ also reports that a second pharmacist was sentenced in the case. Dino Antonioni of Miramar, Florida received a 9 month sentence plus 9 months of home confinement for his role in fulfilling orders for Pitcairn and SafeScripts. He was also required to pay $300,000 to the government.
The ninth person convicted in the case was the middleman who arranged the business transactions between Napoli & Arnold’s Internet order sites, and the brick and mortar pharmacies that supplied the drugs to customers. Salvatore Lamorte of New Jersey was named in the DOJ report as the man that helped illegal Internet pharmacies recruit brick and mortar pharmacies willing to supply illicit drugs to their online customers. He was sentenced to a year and a day in jail and also had to forfeit over $2 million.
UPS & FedEx Receipts Used As Evidence
A report from the Boston Herald indicates that receipts from UPS and FedEx shipments were used as evidence in the cases against the defendants in the SafeScripts case. As reported earlier this week, UPS has just settled a record $40 million fine with the Federal government for their role in transporting illicit and counterfeit drugs for Illegal online pharmacy businesses.