Drug
Firm Accused of Deception
September 21, 2006
A Norcross pharmaceutical company accused of
selling adulterated and unapproved new drugs
over the Internet has been indicted by a federal
grand jury.
Eleven individuals, including the founder
of Hi-Tech Pharmaceuticals, Jared Wheat, were
indicted in the scheme, and four of them appeared
at a bond hearing Wednesday.
Federal officials say the drugs were marketed
in spam advertisements as generic version of
drugs from Canada, but the pills were actually
from a home operation in South America.
"The indictment's allegations are disturbing
because 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 Nahmias
said.
An automated message on Hi-Tech's telephone
system said the company was experiencing technical
difficulties with the phone.
Charged in the indictment are: Jared Robert
Wheat, 34, of Alpharetta; David Dalton Johnson,
37, of Pinehurst, N.C.; David Alan Brady, 40,
of Pinehurst, N.C.; Stephen Douglas Smith, 38,
of Duluth; Thomas Holda, 43, of Duluth; Sergio
Ronaldo Oliveira, 46, of Hoschton; Brad Neal
Watkins, 38, of Birmingham, Ala.; David Watkins,
40, of Norcross; Steven Blinder, 42, of Aberdeen,
S.D.; Michelle Young, 38, a citizen of Belize;
and Guillermo Pech, 28, a citizen of Belize.
The defendants are charged with conspiring
to import controlled substances into the United
States and conspiring to violate the wire and
mail fraud statute and to introduce into interstate
commerce adulterated and misbranded prescription
drugs.
They are also charged - with the exception
of David Watkins, Brad Watkins and Blinder -
with different substantive violations including
mail fraud, distribution of controlled substances
and introducing adulterated and misbranded new
drugs. Wheat is charged with engaging in a continuing
criminal enterprise.
The indictment seeks to forfeit properties,
automobiles and back accounts and seeks a money
judgment of no less than $19.8 million.
According to information presented in court,
Wheat and others opened a drug manufacturing
facility in Belize in 2002. Authorities say
the defendants made 24 different drugs, including
steroids such as Oxymethelone and stanazolo
and unapproved versions of Ambien, Valium, Xanax,
Viagra,
Cialis, Lipitor and Vioxx.
Drug Enforcement Agency agent Sherri Strange
said the federal government has made prescription
drug abuse a priority, but buying and selling
the drugs has become easier because of the popularity
of the Internet and the anonymity it provides.
"One of the fastest growing drug abuse
concerns is prescription drugs." Strange
said. "... As our children sit down at
the family computer to do their schoolwork,
research projects and converse with friends,
criminal organizations like the one alleged
today slither into their lives. Every one of
us has received spam e-mails directing us to
visit Web sites to order supposed generic prescription
drugs and controlled substances. Buyers beware."
While pointing to the Internet as a tool for
deceiving consumers, government officials Wednesday
pointed to one Web site at www.justthinktwice.com
to help parents and children learn more about
the dangers of drugs.
According to information on the Web, the U.S.
Food and Drug Administration and the U.S. Attorney's
Office seized dietary supplements at Hi-Tech
Pharmaceuticals in February. The products contained
25 mg of ephedrine alkaloids per tablet, which
are adrenaline-like stimulants with the potential
for dangerous effects on the heart.
Officials seized raw materials and products
worth $3 million.
In November 2004, the Federal Trade Commission
charged Hi-Tech with deceiving consumers through
advertising.
Patrick Crosby, a spokesman with the U.S.
Attorney's Office, said he could not comment
on past cases.
Source: http://www.gwinnettdailypost.com/index.php?s=&url_channel_id=32&
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