Showing posts with label USPIS. Show all posts
Showing posts with label USPIS. Show all posts

Wednesday, June 24, 2015

MAN PLEADS GUILTY TO FRAUD FOR ROLE IN PRESCRIPTION DRUG DIVERSION SCHEME

FROM:  U.S. JUSTICE DEPARTMENT
Monday, June 22, 2015
California Man Pleads Guilty in Prescription Drug Diversion Scheme

A Corona, California, man pleaded guilty today in U.S. District Court in Cincinnati to one count of conspiracy to commit mail and wire fraud for his participation in a large-scale, nationwide prescription drug diversion scheme.

Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Special Agent In Charge Antoinette V. Henry of the U.S. Food and Drug Administration’s Office of Criminal Investigations (FDA-OCI) Metro Washington Field Office and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) Cincinnati Field Office announced the guilty plea, entered today by U.S. District Judge Timothy S. Black.

According to court documents, from May 2010 through December 2012, Vin Nguyen, 45, and others conspired to distribute illegally-diverted prescription drugs while concealing the true, illicit sources of the drugs.  Nguyen purchased prescription drugs, including HIV medications, anti-psychotic medications and other brand name drugs, from various unlicensed and illegal sources in California and Florida.  Working with co-conspirators, Nguyen then sold the drugs to other drug diverters without the statutorily required pedigree documents stating the origin of the drugs.  Nguyen and his co-conspirators sold more than $6.5 million worth of diverted drugs.

“Illegal prescription drug diversion threatens the security of America’s drug supply chain,” said Principal Deputy Assistant Attorney General Mizer.  “The Department of Justice will continue to protect American consumers by prosecuting those who engage in prescription drug diversion.”

From December 2011 through December 2012, Nguyen and others sold diverted prescription drugs to David Miller and his company, Minnesota Independent Cooperative (MIC).  On May 6, David Miller and MIC were indicted in the Southern District of Ohio and charged with one count of conspiracy to commit mail and wire fraud, 10 counts of mail fraud and one count of conspiracy to make false statements and to distribute prescription drugs without a wholesale license.  Those charges remain pending.

Nguyen and his co-conspirators used the company name “Modern Medical” when selling drugs to Miller and MIC.  Modern Medical is a real California company that had no involvement in the drug sales.  Nguyen and his co-conspirators simply hijacked the name to conceal their involvement and the true, illicit drug sources.

Miller and MIC, in turn, sold the prescription drugs obtained from Nguyen – and multiple other illegal sources – to wholesale and retail customers throughout the United States, including in the Southern District of Ohio.  Miller and MIC are alleged to have created fraudulent pedigree documents falsely stating that they had purchased the drugs from B&Y Wholesale, a company in Puerto Rico.  These false pedigrees covered up the illegitimate sources of the drugs – various illicit, unlicensed suppliers, including Nguyen – and falsely stated that B&Y Wholesale was an authorized distributor of the prescription drugs.

Saturday, June 7, 2014

U.S. CHARGES FORMER BERMUDA REGISTERED SECURITIES TRADER WITH CONSPIRACY

FROM:  U.S. JUSTICE DEPARTMENT 
Wednesday, June 4, 2014
Conspiracy Charge Filed Against Former Convergex Trader

A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.

Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance this morning.

On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey.   On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement.   Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders.   ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”

Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold.   After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.

The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.

The charges in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service.   The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section.  Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation.

The department appreciates the assistance of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the District of New Jersey.

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