St. Jude’s Pharmacy Owner Sentenced To Federal Prison

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jorge Otano (54, Cape Coral) to 12 years in federal prison and imposed a fine of $15,000.  The Court also entered a money judgment of $1,307,000 against Otano and his wife, Martha Otano, representing the amount of funds involved in a conspiracy to evade transaction reporting requirements.  As partial satisfaction of the money judgment, Otano was ordered to forfeit $870,376.79 that had been seized by law enforcement during the investigation.  He was also ordered to forfeit two vehicles that were involved in the money laundering conspiracy.  Jorge Otano pleaded guilty on February 11, 2015.          

According to court documents, from August 2009, to November 15, 2012, Otano and his wife owned and operated St. Jude’s Pharmacy in Cape Coral. During that period, the pharmacy made a significant profit by filling fraudulent prescriptions for oxycodone and charging $4.00 to $12.00 per pill.

From April 2011 to November 15, 2012, the Otanos made structured cash deposits of the proceeds of the illegal narcotics sales into multiple bank accounts. They knew that the money obtained from the sale of oxycodone through the pharmacy was the proceeds of unlawful narcotics distribution. They then used drug proceeds to purchase two residences in Cape Coral, a truck, and a luxury car.

Martha Otano pleaded guilty to conspiracy to evade reporting requirements and substantive acts of evading reporting requirements.  On July 21, 2014, she was sentenced to three years and one month in federal prison.   

This case was investigated by the United States Secret Service and the Drug Enforcement Administration, with assistance from the Cape Coral Police Department and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys David G. Lazarus and Yolande G. Viacava.