Former Owner Of Health PMO Charged With Illegal Distribution Of Drugs, FDA Violations And Money Laundering
– Websites used to dispense pharmaceutical drugs without prescriptions
LOUISVILLE, KY – A federal grand jury in Louisville, Kentucky has returned a nine count indictment against the former owner of Health PMO on charges of conspiracy to illegally distribute and dispense controlled substances, misbranding drugs, wire fraud, and conspiring to commit money laundering, announced David J. Hale, United States Attorney for the Western District of Kentucky.
The indictment alleges between March of 2008 and March of 2009, Stacy Allen Taylor, age 44, of Louisville, Kentucky and others, illegally dispensed controlled substances to customers via internet pharmacies. The defendant used various web site addresses including www.RXvaluePharm.com to distribute and dispense hundreds of orders for prescription drugs, marketed as Legend Drugs, generating sales of Schedule II, III, and IV controlled substance that totaled nearly $790,000.
According to the indictment, customers were not required to provide prescriptions from a practitioner, licensed by law, to administer such drugs before dispensing the controlled prescription drugs. Instead, the defendant permitted customers to fill out or provide information to telemarketing sales agents allowing customers to choose the type and quantity of controlled substances and other prescriptions they wished to purchase.
The indictment further charges Taylor with providing misbranded prescription drugs and in some cases failing to provide customers anything of value in exchange for the funds received. On or about December 2, 2008, it’s alleged that Taylor unlawfully distributed and dispensed 90 “Phentermine” pills via an on-line order by Health PMO to V.W., a resident of Frazeysburg, Ohio. Health PMO billed V.W.’s Visa Platinum credit card $358.98 for the purported controlled substance. Lab results showed there was no Phentermine in the product.
It’s alleged that Taylor, along with others, made arrangements for the controlled prescription drugs to be shipped from India and Hong Kong to customers in the United States. An account was opened at a federal credit union in Louisville, Kentucky for the purpose of depositing proceeds from sales by Health PMO. Taylor made and caused to be made, wire transfers from the Health PMO account to an account at the Federal Bank of the Middle East, Ltd., Nicosia, Cyprus, for the purpose of making payment to the source of the controlled drugs and other substances sold through Health PMO.
In the event of a conviction, the maximum potential penalties are 121 years in prison, a $3,002,000 fine, and supervised release for a period of three years.
The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and it was investigated by the Food and Drug Administration and the United State Postal Inspection Service.
Taylor is scheduled to appear for arraignment following extradition from Hong Kong, before the United States Magistrate Judge on August 23, at 9:30 a.m., in Louisville, Kentucky.
* * *
The indictment of a person by a Grand Jury is an accusation
only and that person is presumed innocent until and unless