Two Officers Of Long Island Based Company Indicted For Sale Of $17 Million Worth Of Misbranded Prescription Drugs Including Counterfeit Cancer Drugs

A 73-count indictment was unsealed this morning in federal court in Central Islip, NY, charging William Scully and Shahrad Rodi Lameh – President and Vice President, respectively, of Pharmalogical, Inc., d/b/a Medical Device King in Great Neck, New York – with multiple counts of conspiracy, mail fraud, wire fraud, distribution of misbranded and counterfeit prescription drugs, trafficking in counterfeit goods, and smuggling.1 The defendants were arrested earlier today and will appear for arraignment before U.S. Magistrate Judge William D. Wall at 2 pm at the federal courthouse in Central Islip.

The arrests were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Mark Dragonetti, Special Agent-in-Charge, Food and Drug Administration, Office of Criminal Investigation, New York Field Office (“FDA OCI”).

As alleged in the indictment, the defendants operated the illegal schemes since March, 2009, and the counterfeit cancer treatment medication was sold to an oncology practice in Iowa. The defendants sold in the United States other drugs and devices including, Mirena brand intrauterine birth control implant devices (“IUDs”) manufactured in Finland that were not approved by the United States Food and Drug Administration for use in the United States. The unapproved IUDs were sold throughout the country to women's clinics and health care providers. The defendants also sold a variety of other unapproved prescription drugs during the course of the scheme and grossed over $17 million.

“As alleged, instead of seeing an opportunity to alleviate suffering and cure disease, Scully and Lameh saw a chance to make money off the backs of those already fighting for their lives, selling counterfeit cancer medication to an unsuspecting clinic. The defendants deliberately and repeatedly flouted the laws enacted to protect our citizens, all in order to flood the market with counterfeit and unapproved drugs and medical devices just so they could line their own pockets,” stated United States Attorney Lynch. "We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit from the illness of others by such fraud."

FDA OCI Special Agent-in-Charge Dragonetti stated, "The FDA will remain vigilant in our efforts against those who would threaten the integrity of the prescription drug supply chain by introducing counterfeit and unapproved products for their own financial gain. We commend the work by the U.S. Attorney's Office, and together we will continue to pursue those who jeopardize the health of the public."

If convicted, each defendant faces a maximum sentence of 20 years of imprisonment, asset forfeiture of more than $17 million, and a $250,000 fine.

The government's case is being prosecuted by Assistant United States Attorney Charles P. Kelly.

The Defendants:

Name: WILLIAM SCULLY

Age: 45

Residence: Commack, N.Y.

Name: SHAHRAD RODI LAMEH

Age: 40

Residence: Manhasset, N.Y.

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1 The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.