View Complaint. Docket Number: 2:17-CR-171 (E.D. Victims were told they had won cars, boats, or other prizes they could claim by purchasing hundreds of dollars’ worth of vitamins. (D.N.J.). The Court held that Congress lacked the constitutional authority under the Fourteenth Amendment to outlaw racial discrimination by private individuals and organizations, rather than state and local governments. Arbor Pharmaceuticals v. Cochran, The defendants conspired to smuggle at least 43 known shipments, totaling approximately 106,000 pills, from China to Texas. Hidalgo was arrested in 2016 by Peruvian authorities and extradited to the United States with two co-defendants last year. Pursuant to a criminal resolution with the Department of Justice, FKOL agreed to plead guilty to the misdemeanor offense and pay the fine and forfeiture amounts. South Dakota Man Pleads Guilty in “QLasers” Medical Device ScamUnited States v. Ronald D. Weir, Jr. Press Release In a July 2019 complaint, the government alleged that Facebook violated a 2012 FTC Order and committed new violations of the FTC Act by misrepresenting to consumers how to protect personal data and how Facebook used such data. The firm agreed to be bound by a consent decree of permanent injunction, which includes the recall and destruction of all dietary supplements manufactured, prepared, processed, packed, labeled, held, and/or distributed by the firm since April 2014. Court Enters Order of Permanent Injunction Against California Mung Bean and Soy Manufacturer United States v. Henh Wong Fresh Produce, et al. Indiana Resident Charged with Sending Fraudulent Collection Letters to Mail FraudUnited States v. Sherry Gore Despite the fact that the company had told the FDA that the Stratus was intended to maintain an opening to a patient’s sinus, Facteau and Fabian launched the product intending it to be used as a steroid delivery device. Defendant Pleads Guilty in Alleged $174 Million Health Care Fraud Scheme. Earlier this year, Allen pled guilty to one count of a pending indictment charging that she and a co-conspirator in Jamaica sought to unlawfully enrich themselves in a fraudulent lottery scheme targeting an elderly resident of Evans, Georgia. On March 31, 2014, the U.S. District Court for the Eastern District of New York entered an injunction against New York City Fish, Inc., a manufacturer of ready-to-eat fishery products, including smoked salmon and mackerel, and three of its employees: Maxim Kutsyk, Pavel Roytkov, and Leonid Staroseletesky. A .gov website belongs to an official government organization in the United States. The court also set a June 11 hearing on the government’s motion for preliminary injunction. Texas Resident Pleads Guilty to Illegal Importation of Counterfeit Vaping Products. TPN is liquid nutrition administered intravenously to patients who cannot or should not receive their nutrition through eating. The letters falsely claimed recipients had won money or valuable prizes, such as luxury cars. §§ 1681 et seq. Under the terms of the agreement, B. Braun will increase oversight of its product suppliers by conducting on-site audits of companies that design and make finished products that bear the B. Braun name on the label or logo and testing such products for sterility, identity and purity, as appropriate, on a periodic basis. When contacted by prospective victims, the conspirators used false and fraudulent promises and documents regarding the puppies, shipping fees, and coronavirus exposure to extract payments. Eubank, who operated an automobile electronics repair shop in Midlothian, Virginia, acknowledged that between 2010 and 2016, he used various electronic tools to access motor vehicle odometers to lower the odometer readings of hundreds of vehicles. The indictment alleges that PacNet, under the defendants’ direction, was the payment processor of choice for companies that mailed large volumes of fraudulent notifications designed to mislead victims into falsely believing they would receive a large amount of money, a valuable prize, or specialized psychic services upon payment of a fee. Press release Sentencing hearings for all of the defendants will be held in Dallas before U.S. District Judge Sam A. Lindsay. District Court Issues Temporary Restraining Order Blocking Multi-Million Dollar Elder Fraud Schemes United States v. Kafeiti et al. );1:14-CR-10 (S.D. Long was charged with multiple counts of wire fraud, aggravated identity theft, and money laundering for a scheme that victimized hundreds of thousands of account holders throughout the United States. Sitesh Patel, the vice president of S.K. Tampa Pharmacy and Two Employees Preliminarily Enjoined in Prescription Opioid Enforcement Action. On August 2, 2018, Karen Turner was sentenced to nine months in prison for wire fraud and money laundering in connection with two fraudulent pharmacies that Turner used to divert prescription drugs into the gray market. Prescription Drugs In addition to seeking injunctive and civil monetary penalty relief for violations of the CSA, the complaint also contains allegations under the False Claims Act for falsely billing Medicare for illegally dispensed controlled substance prescriptions. Docket NO. The complaint alleges that the defendants ignored obvious signs of abuse or diversion when issuing and filling opioid prescriptions, and that drug toxicity played a role in the deaths of several individuals who received controlled substances from the defendants. ); 2:15-CV-8889 (C.D. In pleading guilty, Bencosme admitted that she, as principal investigator at Unlimited Medical Research, fabricated the clinical trial by falsely representing in medical charts and other sources that subjects were participating in the trial when, in fact, they were not participating or taking the study medication, as required. Additionally, the defendants instructed others to destroy evidence once they became aware that they were under investigation. The injunction, which will last for at least five years, follows an October 20, 2015 order in which the court granted the government’s motion for summary judgment, finding that the defendant company, Serra Cheese, was adulterating cheese products under the Food, Drug, and Cosmetic Act. Two months after B. Braun started selling syringes manufactured at the new AM2PAT facility, B. Braun recalled all of the syringes because the radiation sterilization process caused dangerous white particles to develop in the saline inside the syringes. On June 1, 2020, U.S. District Judge David Counts issued a temporary restraining order under the anti-fraud injunction statute (18 U.S.C. The consent decrees require the defendants to stop importing, selling, or distributing toys and other children’s products until they implement product safety and testing programs that will bring their operations into compliance with the law. In February 2007, the U.S. Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) announced that an ongoing outbreak of salmonellosis cases in the United States could be traced directly to peanut butter produced at the company’s plant in Sylvester, Georgia. Docket Number: 8:18-CV-996 (C.D. On August 6, 2018, the District Court permanently enjoined a group of entities and individuals alleged to have been involved for more than a decade in predatory mail fraud schemes that targeted primarily elderly victims throughout the world. Victims were instructed to send small processing fees – typically $20 or $25 – to claim the prizes. In the course of authorizing drug orders for RX Limited, the defendant had no face-to-face contact with customers, performed no mental or physical examinations, did not take patient histories or perform any diagnostic or laboratory testing, did not check the accuracy of the information customers provided, and did not monitor, or provide any means to monitor, medication response. The products had not been approved by Food and Drug AdminIstration. 20-CV-4218 (C.D. Injunctions Entered Against Defendants in Multi-Million Dollar International Mail Fraud SchemeUnited States v. BDK Mailing GmbH, et al.Press Release Pursuant to the decree, the defendants must cease all operations and obtain FDA’s approval before resuming the manufacture of dietary supplements in the future. In reality, these companies were telemarketing operations that did very little to help homeowners after they paid upfront fees ranging from $3,500 to $5,500. Mont.). The United States’ criminal trial against Indivior is scheduled to begin on May 11, 2020. Barka, who primarily resided in Turkey during the course of the scheme, worked with a co-conspirator to send fraudulent prize notification letters to victims in the United States and numerous other countries. and United States v. California Stem Cell Treatment Center, Inc., et al.Press Release On Feb. 21, 2018, the district court issued a temporary restraining order pursuant to 18 U.S.C. Docket Number: 3:15-cr-496 (N.D. While women's rights are usually ignored in most of … The district court entered the proposed consent decree. Medical Device Maker Pleads Guilty to Misbranding and Agrees to Pay $36 Million to Resolve Criminal Liability and False Claims Act AllegationsUnited States v. Biocompatibles, Inc.Press ReleaseDocket Number: 1:16-MJ-00710 (D.D.C.). Court Denies Homeopathic Drug Company’s Third Motion for Injunctive Relief in Case Involving Challenge to FDA’s Addition of the Company’s Products to an Import Alert. As part of the fraud plea, Adrianzen admitted that he partnered with call centers in Peru that took money from vulnerable and elderly U.S. Spanish-speaking victims through lies and threats. This page lists current CPB case updates accessible to the public. On April 9, 2019, a grand jury returned and indictment against Indivior Inc., a pharmaceutical company, for engaging in an illicit nationwide scheme to increase prescriptions of Suboxone Film, an opioid drug used in the treatment of opioid addiction. Affected customers interested in refunds can contact My Doctor Suggests LLC at (1-866-660-9868) or refunds@mydoctorsuggests.com. On May 25, 2018, the district court entered a consent decree of permanent injunction against Michel G. Blanchet, permanently enjoining the defendant from preparing, processing, and distributing fish or fishery products that are adulterated under the Food, Drug, and Cosmetic Act. Prior to the filing of the complaint, Oshiro shuttered his business and agreed to a consent judgment wherein he will be required to obtain FDA approval before re-opening. MediNatura v. FDA, District Court Enters Consent Decree of Permanent Injunction Against Maine Fish Processor United States v. Mill Stream Corporation and Ira J. Frantzman, Press ReleaseDocket Number: 1:16-CV-0080  (D. As part of a guilty plea, Hermoza admitted that he and other callers he supervised falsely told victims that they were attorneys or government representatives. Through multiple websites, the defendants promoted the “miracle solution” as a cure and treatment not only for COVID-19 but also for other serious diseases ⸺ including Alzheimer’s, autism, brain cancer, HIV/AIDS, and multiple sclerosis. United States v. Home Style Foods et al. Pentax was charged in a criminal complaint with failing to file timely reports of two hospital infection outbreaks associated with its duodenoscope and with shipping four other types of endoscopes for 18 months without FDA-approved instructions for use. After four hours of deliberation, the jury found the defendants liable for the United States’ remaining claims and concluded that they committed more than 117 million knowing violations of the TSR. The order also will apply to any social media campaigns by the companies to promote cigarettes. The court scheduled Armistead’s sentencing for December 22. Va.). Fla.) District Judge Stanley R. Chesler told Yabe that “you deserve to be professionally disgraced – your conduct was unpardonable,” but noted that there was no evidence that Yabe intentionally violated the law and credited him for coming to the United States to plead guilty, when there was little possibility that he would be extradited. Nevada Woman Pleads Guilty in Multi-Million-Dollar Prize Notification Scam Affecting Elderly Victims United States v. Burrow According to the indictment, PacNet served as the middleman between banks and the fraudulent mailers – aggregating the checks, cash, and credit card payments collected by its clients, depositing the payments into PacNet-controlled bank accounts, and then distributing the funds as directed by the clients. Dallal procured the drugs from multiple illegal and unlicensed sources and sold them to co-conspirators without the required pedigree document stating where Dallal had purchased the drugs. Working with her co-conspirator in Jamaica, Palmer recruited a friend in Maryland to receive $7,500 of the victim’s money. In addition to entering the preliminary injunction, the court set a show cause hearing for May 11 regarding the defendants’ alleged violations of the previously issued temporary restraining order. PharMedium also must take remedial measures to ensure compliance with the FDCA at its other facilities and at its headquarters in Illinois. New Jersey and Florida Companies Enjoined from Distributing Unapproved, Misbranded, and Adulterated Drugs United States v. Stratus Pharmaceuticals, Inc., et al.Press Release The FDA has approved Onyx only for use inside the brain. On July 23, 2020, Utah resident Gordon H. Pedersen was indicted on wire fraud, mail fraud, and drug misbranding charges in connection with an alleged scheme to fraudulently sell a purported COVID-19 treatment. Please try again. SARMs are synthetic chemicals designed to mimic the effects of testosterone and other anabolic steroids. Docket Number: 6:18-CR-0004 (D. As alleged in the information, while a number of the patients who died had underlying conditions which may have contributed to their deaths, medical records of some patients suggest that the S. marcescens bloodstream infections were also a significant factor. On December 19, 2019, Johnny Hidalgo, Rodolfo Hermoza, and Francesco Guerra were extradited from Peru to face charges of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and extortion in the Southern District of Florida. Tex.). He instructed consumers to combine MMS with citric acid to create chlorine dioxide, add water and drink the resulting mixture to cure numerous illnesses. According to the complaint, FDA inspections documented significant deficiencies relating to cleanliness and hygienic practices to protect against food contamination, causing the defendants’ products to be adulterated under the law. Defendant Sentenced for Role in Jamaican Lottery ScamUnited States v. Vania Lee AllenPress Release Four Individuals Charged in Connection with Clinical Trial Fraud Scheme. §§ 331(d) and 333(a)(2). § 1345), was filed against a John Doe defendant standing in for the operator of the website, whose true identity remains unknown. On May 8, 2019, the court sentenced Matthew Dailey to 24 months in prison for the illegal importation and sale of kratom, which he sold to consumers as a purported treatment for various serious diseases and medical conditions, including opiate withdrawal symptoms. Court Enters Preliminary Injunction Against Telecom Carriers Alleged to Facilitate Hundreds of Millions of Fraudulent Robocalls, United States v. Palumbo, et al. Many victims received nothing; others received only a cheap piece of jewelry or a report listing unrelated sweepstakes. Sentencing is set for March 26, 2019. Marks also arranged for other U-Turn sales representatives to serve as phony references during his attempted sales, and Marks served as a phony reference for other sales representatives. Specifically, the complaint alleged that multiple FDA inspections revealed that the defendants compounded sterile drugs under insanitary conditions. The money laundering was in connection with an international lottery fraud scheme involving co-conspirators in Florida and Jamaica. As alleged in the information, between March 5 and 15, 2011, nine patients at various Birmingham-area hospitals who developed bloodstream infections caused by S. marcescens died, and several other hospital patients developed S. marcescens bloodstream infections but survived. One of his co-defendants will be sentenced in April, and another co-defendant is set for trial later this spring. Sentencings for Willson and Hebert are set for August 13 and August 19, 2020, respectively. Docket Number: 15-cr-20471 (S.D. Defendants Sentenced in Connection with Internet Pharmacy SchemeUnited States v. W. Scott HarkonenDocket Number: 15-16844 (9th Cir./N.D. Epsilon also agreed to implement significant compliance measures designed to safeguard consumers’ data. Docket Number: 2:18-CR-00726 (D. N.J.). La. On March 15, 2021, U.S. District Judge James P. Jones sentenced Brett Becker to six months of home confinement for introducing unapproved new drugs into interstate commerce in violation of the Food, Drug, and Cosmetic Act. Calif.). Contact a qualified civil rights attorney to help you protect your rights. However, according to a criminal Information filed Sept. 22, 2017, Aegerion failed to give health care providers complete and accurate information about HoFH and distributed Juxtapid as a general treatment for high cholesterol without adequate directions for such use. Employee of Chinese Chemical Supplier Pleads Guilty in Scheme to Sell Mislabeled Dietary Supplements United States v. XuPress Release Both defendants worked at Multivend, LLC, d/b/a/ Vendstar, based in Deer Park, New York. ), Docket Numbers: 2:16-CR-0124 (E.D. Docket Number: 3:18-CV-331 (N.D.N.Y.). § 371, and criminal contempt in violation of 18 U.S.C. Fla.). On July 27, 2020, the Department filed a civil complaint against MyLife.com and its founder Jeffrey Tinsley seeking injunctive relief, redress, and civil penalties under the FTC Act, the Telemarketing Sales Rule, the Restore Online Shoppers’ Confidence Act, and the Fair Credit Reporting Act for unfair and deceptive conduct in selling online subscriptions to purported consumer background reports and for selling background reports without complying with the legal requirements for doing so. Weir admitted that claims the device could safely and effectively treat virtually any disease were false and intended to mislead consumers. Alabama Pharmacy Enjoined from Distributing Adulterated, Misbranded, or Unapproved DrugsUnited States v. Medistat RX, LLC, et al. The permanent injunction requires Scilabs and Edalat to cease all operations connected to the company, and not to resume until FDA determines that their manufacturing practices have come into compliance with the law. According to an indictment returned last October, Xu agreed with a confidential government informant to mislabel synthetic stimulants arriving in the United States or otherwise help to hide from retailers the true nature of a proposed new dietary supplement. On Nov. 14, 2017, the Ninth Circuit Court of Appeals affirmed the conviction of Louis Daniel Smith, who is serving a 51-month sentence for conspiracy, smuggling, distributing misbranded drugs, and defrauding the United States. Docket Number: 5:19-cr-524 (W.D. Docket Number: 8:18-cv-996 (C.D. On January 29, 2019, the district court issued a default judgment and permanent injunction pursuant to 18 U.S.C. Both defendants pleaded guilty last year. The government alleged that the company’s fish products were adulterated pursuant to the Food, Drug, and Cosmetic Act. In January 2014, Ul Haq entered guilty pleas to all 48 counts of the indictment, which charged him with conspiracy to import and distribute Schedule II, III, and IV controlled substances, conspiracy to defraud the United States and its agencies and introduce into interstate commerce misbranded drugs, conspiracy to commit international money laundering, and numerous substantive offenses of the Controlled Substances Act and the Federal Food, Drug, and Cosmetic Act. Further, because they are prescription drugs, their labels by definition cannot bear adequate directions for use by a layperson. Based on the evidence presented, the court found probable cause to conclude that the defendants engaged in “a widespread pattern of telecommunications fraud, intended to deprive call recipients in the Eastern District of New York and elsewhere of money and property.”  Among other provisions, the injunction bars defendants from carrying any VoIP calls destined for phones in the United States and from providing any U.S. telephone numbers (often used as call-back numbers in the fraudulent robocalling schemes) to any individuals or entities during the pendency of the litigation. As part of a global resolution, Baxter agreed to a deferred prosecution agreement and to pay a total of $16 million in criminal monetary penalties and forfeiture. No sentencing date has been set. On March 23, Richard Linick was sentenced to 3 years in prison for fraudulently selling $1.65 million in vending machine businesses to more than 140 victims. 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