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Feds Announce Indictment in Drug Sales
Wednesday December 3, 2003 9:16 PM
By CURT ANDERSON
Associated Press Writer
WASHINGTON (AP) – Federal prosecutors announced a 108-count indictment Wednesday against a dozen people and two companies for allegedly selling controlled substances, mainly Viagra and weight-loss drugs, over the Internet illegally.
The indictment, returned by a federal grand jury in Alexandria, Va., charges that customers were able to purchase the drugs with inadequate or no medical supervision, little diagnostic testing and scant monitoring of the person’s response to the drugs as required by law.
The Internet sites used mass e-mail and advertising to sell drugs, giving discounts to customers who bought large quantities.
“Drug trafficking in cyberspace is just as harmful to public safety as drug trafficking on street corners,” said U.S. Attorney Paul McNulty. “The advent of the Internet does not mean doctors and pharmacists can bypass rules concerning the dispensing of prescription drugs, particularly controlled substances.”
Charges include illegal distribution of controlled substances – such as the diet drugs Bontril, Ionamin, Phentermine and Adipex – and illegal use of a communications facility to perform the distribution.
Among those charged was Vineet K. Chhabra, also known as Vincent K. Chhabra, a 32-year-old Golden Beach, Fla. resident described by prosecutors as the main organizer of the scheme. He faces a 20-year sentence if convicted of operating a continuing criminal enterprise and additional prison time if convicted on money laundering, controlled substance violations and other charges.
Also facing multiple counts and more than 20 years in prison are Chhabra’s sister, Sabina S. Faruqui, of Weston, Fla., and their uncle, Sunil K. Sethi. of Midlothian, Va. The CChabra Group LLC and USA Prescription Inc. also were charged as businesses with conspiracy.
Four physicians also were charged in the indictment with illegally allowing their names to appear on vials of drugs dispensed over the Internet.
Besides prison time, the defendants could be forced to forfeit more than $125 million in proceeds from the illegal sales, prosecutors said.
The Justice Department, FBI, Drug Enforcement Administration and Food and Drug Administration are involved in the investigation.
Posted on Wed, Dec. 03, 2003
Five doctors, five Web site operators indicted in drug sting
Associated PressALEXANDRIA, Va. – Ten people, including five doctors, and three companies were indicted Wednesday on charges of illegally selling controlled substances and other prescription drugs over the Internet.
Customers bypassed seeing a physician for the orders for weight-loss drugs and other prescriptions, authorities said.
“This case is about a dangerous new spin on an old problem,” U.S Attorney Paul J. McNulty said. “Drug trafficking in cyberspace is just as harmful to public safety as drug trafficking on street corners.”
According to the indictment, the online drug ring allowed customers to order drugs through Web sites. There, customers were allowed to order an unlimited supply, selecting the type and dose. The weight-loss drugs included Bontril, Ionamin, Phentermine, Adipex and Meridia.
Prosecutors said site visitors answered questions on a medical form, but no one verified the accuracy of the information, and no one ever met a doctor in person, as required by law.
Three of the people indicted, who ran the Web sites, were related. They include: alleged ring leader Victor Chhabra, 32, of Golden Beach, Fla.; his sister, Sabina Faruqui, 30, of Weston, Fla.; and their uncle, Sunil Sethi, 48, of Midlothian, Va. They also were charged with conspiracy to commit money laundering.
Chhabra is also charged with engaging in a continuing criminal enterprise because he largely benefited by violating the Controlled Substances Act.
Also indicted were formerly licensed physician and Web site operator Daniel Thompson, 48, of Columbus, Ohio, and James Trovato, 38, of Independence, Ohio, who also allegedly ran an online business selling the drugs.
The doctors included: Daniel Varalli, 54, of Salem, Va.;William Thompson, 44, of St. Charles, Mo.; Laurence Cockerille Jr., 71, of Litchfield, Ohio; Arturo Portales, 44, of Lexington, Ky.; and Russell Johnson, 50, of Chester, Va.
The indictment said the physicians’ names were on all of the drugs distributed.
Spokeswoman Sam Dibbley on Wednesday declined to say how the ring was discovered.
Posted on Wed, Dec. 03, 2003
Feds crack down on Internet pharmacy operators
BY JOHN DORSCHNER
[email protected]Alleging that he led an ongoing criminal enterprise that raked in more than $125 million, a federal grand jury in Virginia Wednesday released an indictment against Vincent Chhabra, 32, a South Florida kingpin in the Internet pharmacy business, and nine others.
The 108-count indictment focuses on charges that Chhabra and the others used many websites — including get-it-on-.com — to illegally sell controlled substances, mostly diet pills, without requiring that customers first be physically examined by doctors.
Also indicted were Chhabra’s sister, Sabina S. Faruqui, 30; an uncle, Sunil K. Sethi, 48; a Virginia pharmacist and physicians from Ohio, Missouri, Kentucky and Virginia.
”This case is about a dangerous new spin on an old problem,” said Paul J. McNulty, U.S. Attorney for the Eastern District of Virginia, in a prepared statement. “Drug trafficking in cyberspace is just as harmful . . . as drug trafficking on street corners. The advent of the Internet does not mean doctors and pharmacists can bypass rules.”
Prosecutors alleged that no one at the companies bothered to check the accuracy of online questionnaires that customers filled out in order to get their drugs. Many Internet users think of Chhabra’s companies, as well as many others, as major originators of spam that clog their e-mail inboxes.
One of Chhabra’s attorneys, Sean Ellsworth, and a publicist, Cori Zywotow Rice, did not immediately return calls seeking comment.
If convicted, Chhabra faces a mandatory 20 years for the criminal enterprise and up to 20 years for money laundering. The indictment also seeks the forfeiture of 15 luxury cars — including five Mercedes-Benzes, four BMWs and an Aston Martin — and 72 pieces of jewelry.
Chhabra’s main company was USA Prescriptions, which ran the websites, first from a storefront in Davie and later from a Weston office building. He also was co-owner of RxNetwork, a Davie pharmacy that was raided by agents of the Drug Enforcement Administration in October.
The DEA yanked RxNetwork’s controlled substance license because it had filled prescriptions for customers based solely on their filling out online questionnaires. Three weeks later, Ellsworth announced that the pharmacy was closing because, though the websites offered several dozen other drugs, the pharmacy couldn’t make money without the controlled substances.
”That just shows that the controlled substances are the vast majority of their business,” said Joe Kilmer, DEA spokesman.
The indictment alleges that Chhabra and the others started their online drug selling in Ohio in 1998. After the state of Ohio issued a search warrant for their premises in 1999, the group set up companies in Virginia “in an attempt to hide their operation.”
The companies used pharmacies in Alabama, Florida and Louisiana to fill the prescriptions, according to the indictment.
To confuse state authorities, the websites had doctors write prescriptions for customers located in states other than those the physicians resided in.
The others indicted were Daniel L. Thompson, 48, a Ohio physician who also ran websites; William Thompson, a Missouri physician; Laurence L. Cockerille Jr., 71, an Ohio doctor; Arturo L. Portales, 44, of Kentucky; and Russell A. Johnson, 50, of Virginia.
Also named were Daniel M. Varalli, 54, a pharmacist and co-owner of Rx Direct, a Virginia pharmacy used to distribute controlled substances; and James A. Trovato Jr., 38, who operated drug-selling websites from Ohio.
