Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
August 08, 2013

PHARMACIST PLEADS GUILTY TO MONEY
LAUNDERING CONSPIRACY IN CONNECTION
WITH COMPOUNDING MILLIONS OF HYDROCODONE
PILLS FOR ILLEGAL INTERNET PHARMACY

            SHERMAN – A pharmacist has pleaded guilty in Philadelphia, Pennsylvania to charges originating in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

            Eric Vern Fox, 45, a pharmacist living in Berwyn, Pennsylvania, pleaded guilty to money laundering conspiracy, in violation of federal money laundering laws, announced United States Attorney Zane David Memeger.  These charges were transferred from the Eastern District of Texas for guilty plea and sentencing.  According to the charges, from June 2002 until September 2007, Fox owned and operated two compounding pharmacies in this district:  the Medicine Shoppe, located at 578 Lancaster Avenue, Berwyn, PA, and Compounding Rx Apothecary, located at 81 Lancaster Avenue, Store #4, Malvern, PA.  The indictment alleges that from June 2002 until September 2007, Fox agreed with the owners and operators of an illegal internet pharmacy, the Madison Pain Clinic, located in Texas, to compound millions of hydrocodone pills that the Madison Pain Clinic sold to internet customers under fraudulent “prescriptions,” outside the usual course of professional practice and not for a legitimate medical purpose. 

            The money laundering charge to which Fox pleaded guilty alleges that between June 2002 and September 2007, Fox was paid by the Madison Pain Clinic for the hydrocodone pills that the clinic sold to its internet customers, and agreed to launder the proceeds of this illegal activity totaling at least $4,500,000.  The plea agreement calls for Fox to receive an agreed-upon sentence of twelve months and a day in prison, followed by three years of supervised release.  The plea agreement also requires Fox to forfeit the sum of $2,000,000 and pay an assessment of $100.  At the hearing today, the Honorable R. Barclay Surrick accepted the plea agreement, scheduling sentencing to take place on November 8, 2013. 

            The case was investigated by the Drug Enforcement Administration and the Internal Revenue  Service, Criminal Investigation Division.  It was prosecuted by Assistant United States Attorney Steven Buys in the Eastern District of Texas. In the Eastern District of Pennsylvania, the case is being prosecuted by Assistant United States Attorney Mary E. Crawley.

UNITED STATES ATTORNEY'S OFFICE       Contact:    PATTY HARTMAN
EASTERN DIS­TRICT, PENN­­­­­­SYLVANIA                           Media Contact­
Suite 1250, 615 Chest­nut Street                                             215-861-8525
Philadelphia, PA  19106        

 

 

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