11
Arrested in Counterfeit Drug Sales
September 20, 2006
Federal authorities have indicted 11 people
in Georgia, North Carolina, South Dakota and
the Central American nation of Belize on charges
of selling counterfeit prescription drugs over
the Internet.
Investigators believe many of the drugs had
little or no medicinal value, and that those
behind the scam netted more than $19 million.
The company, Hi-Tech Pharmaceuticals of Norcross,
Ga., marketed the drugs as Canadian through
unsolicited e-mails, but the pills actually
were made in Belize, the U.S. attorney's office
said Wednesday.
Four Georgia residents implicated in the scam
appeared before a federal magistrate Wednesday
in Atlanta. Prosecutors showed photographs of
the company's squalid drug lab in Belize, where
pills were stored in large garbage cans marked
with "Viagra"
and " Lipitor."
In the photos, the equipment used to make the
pills was covered in dust and dirt, and rooms
were filled with unorganized boxes and canisters.
Customers "thought they were getting legitimate
and safe prescription drugs over the Internet
from Canada at cheaper prices, when in reality
they received adulterated fakes that were crudely
made in an unsanitary house in Belize,"
U.S. Attorney David E. Nahmias said.
Nahmias said the drugs were "not properly
produced or regulated. You don't know what you're
getting." He said authorities did not know
how many customers were involved, but obviously
they numbered at least in the hundreds.
Assistant U.S. Attorney Aaron Danzig said Hi-Tech
and its subsidiaries are still operating. The
company is estimated to be worth $35 million
and to have produced more than 30 million pills.
Attorney Tim Fulmer, representing Hi-Tech,
said in a statement that the facts will show
there is no basis for the indictment.
All four Georgia residents pleaded not guilty
to the charges. Magistrate Linda Walker released
one defendant on $75,000 bond. Three others
were held without bond.
Nahmias said those arrested out of state would
have hearings in those states. One of the accused,
Georgia resident Brad Watkins, remained at large,
he said.
The indictment seeks forfeiture of numerous
properties, automobiles and bank accounts, and
a judgment of at least $19.8 million.
Nahmias said the defendants are accused of
making 24 different drugs, including counterfeit
versions of Vioxx, Viagra, Cialis,
Valium and Xanax, and marketing them through
unsolicited "spam" advertisements
as authentic generic versions of drugs being
imported from Canada.
Source: http://news.yahoo.com/s/ap/20060920/ap_on_re_us/internet_drugs_3 |
