Two brothers from Maryland, Patrick Boyd and Charles Boyd, who owned the pharmaceutical wholesale company Safe Chain Solutions, were convicted by a federal jury in Fort Lauderdale for their roles in distributing over $92 million worth of misbranded HIV drugs. The conviction followed a multi-week trial that concluded on October 29.
Court documents and evidence presented at trial revealed that the Boyds purchased large quantities of HIV medication from black-market suppliers through patient buyback schemes. They then resold these drugs to thousands of pharmacies across the United States, including those in South Florida, using falsified paperwork to disguise the drugs’ true origins.
U.S. Attorney Jason A. Reding Quiñones stated, “This case exposed a reckless disregard for human life. The defendants put profit ahead of patient safety, moving more than $92 million in tampered, black-market HIV medication through pharmacies across the country. Our Office will continue holding accountable those who endanger the public and betray the trust that underpins our healthcare system.”
One supplier, Peter Khaim of Boulevard 9229, testified during the trial that he obtained HIV drugs from patients on the street and shipped them to Safe Chain Solutions using various packaging materials—including cardboard boxes found in trash—to conceal their origin. Many bottles were described as dirty or missing instructions but were still accepted and distributed by Safe Chain Solutions.
The Boyds acquired more than $35 million in black-market HIV drugs from Boulevard 9229 and over $42 million from another supplier called Gentek, whose leaders operated out of Miami. One leader from Gentek has already received a 15-year prison sentence.
Pharmacies repeatedly reported issues with products supplied by Safe Chain Solutions, noting cases where bottles labeled as HIV medication actually contained other pharmaceuticals such as Seroquel or pain medications. In one instance, a patient who took Seroquel believing it was his prescribed HIV drug lost consciousness for an entire day.
Testimony also indicated that former compliance staff at Safe Chain Solutions raised concerns about purchasing from black-market sources but were ignored or told not to document these issues. Former legal counsel for the company testified that material information was concealed while seeking advice about regulatory obligations.
Both Patrick and Charles Boyd were found guilty on several counts: conspiracy to introduce misbranded drugs; introducing misbranded drugs into interstate commerce; conspiracy to traffic medical products with false documentation; conspiracy to commit wire fraud; and wire fraud itself. Sentencing will be determined by a federal judge after considering sentencing guidelines and statutory factors.
The investigation is being conducted by HHS-OIG Miami Regional Office and FBI Miami Field Office. Prosecution is led by Assistant U.S. Attorney Alexander Thor Pogozelski and Trial Attorney Jacqueline Zee DerOvanesian of the Department of Justice’s Fraud Section; asset forfeiture is handled by Assistant U.S. Attorney Nicole Grosnoff.
Further details are available on the District Court for the Southern District of Florida website (www.flsd.uscourts.gov) or via http://pacer.flsd.uscourts.gov under case number 24-cr-20255.
