$18 Million Seized from Owners of New England Compounding Center
BOSTON – More than $18,000,000 was seized from accounts connected to the owners of New England Compounding Center (NECC). The funds were seized from 13 different financial institutions, pursuant to 26 seizure warrants issued by the federal court in Boston. The seizure warrants were unsealed today.
Approximately $1,500,000 was seized from three accounts held by Barry J. Cadden, a shareholder and the head pharmacist of NECC. Cadden was recently charged in a 131-count criminal indictment along with 13 other individuals, in connection with the 2012 fungal meningitis outbreak caused by contaminated medications made by NECC. Among the charges that Cadden faces are 25 acts of second degree murder as well as mail fraud, conspiracy and violations of the Food, Drug and Cosmetic Act.
In addition, approximately $16,800,000 was frozen in accounts held by or connected to Carla Conigliaro, 51, and Douglas A. Conigliaro, 53, of Dedham, Mass. Carla Conigliaro is the majority shareholder of NECC, and Douglas A. Conigliaro is her husband. Both were recently charged with transferring assets following the 2012 fungal meningitis outbreak.
According to the allegations in the application for the seizure warrants unsealed today, the Conigliaros transferred millions the same month that NECC surrendered its pharmacy license and shortly before NECC’s petition for bankruptcy. Carla and Douglas A. Conigliaro also allegedly transferred millions more after the bankruptcy court issued two orders prohibiting them from transferring any assets.
United States Attorney Carmen M. Ortiz; Jeffrey Ebersol, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Shelly Binkowski, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, made the announcement today. The asset forfeiture seizures are being handled by Assistant U.S. Attorney Veronica M. Lei of Ortiz’s Asset Forfeiture Unit. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of the Health Care Fraud Unit for the U.S. Attorney’s Office in the District of Massachusetts, and Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch.