Charges have been filed against ten pharmaceutical distributor executives, sales representatives, and brokers in connection with the illegal distribution of nearly 70 million opioid pills. The charges were unsealed in several districts including the Southern District of Texas, Southern District of Florida, Eastern District of Missouri, and Eastern District of North Carolina. This enforcement action also involved three Houston-area pharmacy operators.
The court documents allege that the opioids distributed included oxycodone, hydrocodone, and hydromorphone in their most potent forms. These drugs were allegedly sold at high prices to pill-mill pharmacies in Houston. Principal Deputy Assistant Attorney General Nicole M. Argentieri stated that "the defendants...exploited the opioid crisis for profit," adding that these actions had a black-market value exceeding $1.3 billion.
DEA Administrator Anne Milgram emphasized the impact on public health, stating that those charged "knowingly supplied pill-mill pharmacies" and "coached pharmacy operators on how to evade law enforcement detection." She reiterated that "no one is above the law."
U.S. Attorney Alamdar S. Hamdani highlighted the cross-state operations of distributors who targeted Houston as a "hot zone" for drug diversion. Christian J. Schrank from HHS-OIG noted that such practices threaten public health and Medicare integrity.
The FBI's Chad Yarbrough remarked on their commitment to preventing controlled drugs from reaching unauthorized hands, while FDA-OCI's Justin Green stressed their dedication to pursuing those compromising public safety.
Jonathan Ulrich from USPS-OIG reminded that corporate executives facilitating opioid abuse would be held accountable.
Among those charged are Sheldon Dounn from Florida; Richard Osbourne and Courtney Rotenberry from Tennessee; Hernan Alvarez from Phoenix; Joshua Weinstein from Miami; Derrick Atkinson from North Carolina; Jason Smith, Joseph Pesserillo, and Cassandra Rivera from Florida; Eric Bailey from St. Louis; and Velencia Griffin, Kendal Lyons, and Andre Reid from Houston.
A federal judge will determine sentences considering various factors if convictions occur.
This case was investigated by multiple agencies including DEA, HHS-OIG, FBI, USPS-OIG, FDA-OCI with assistance from other federal and state bodies.
The Fraud Section leads efforts against healthcare fraud through its Health Care Fraud Strike Force Program which has charged over 5,400 defendants since 2007.
An indictment is an allegation where all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.
