Printable VersionPHOENIX— A former Lake Havasu City couple who ran a company that allegedly imported Indian-made knockoffs of popular prescription drugs and sold them as brand-name U.S. drugs has been indicted by a federal grand jury, the U.S. attorney’s office in Phoenix announced Wednesday.
According to the indictment, the couple’s firm offered more than 600 name-brand drugs, including blockbusters such as Viagra, Celebrex, and Lipitor, at deep discounts through its Web site and toll-free telephone lines. The government alleges the company instead sent knockoffs manufactured in India that weren’t approved by the U.S. Food and Drug Administration and which they had smuggled into the U.S.
Between July 2004 and January 2006, the company filled more than 15,000 orders and generated revenue of more than $2.5 million, according to the government.
The couple were issued a summons but a court date hasn’t been set.
When contacted by the News-Herald, French, who now lives in Kingman, was unaware of the indictment at first saying “I have no comment.” When read the parts of the indictment, he replied, “I have not heard of this (the indictment) whatsoever. I don’t know what to say.”
French said he was unaware of the status of the federal investigation. “I didn’t know if it was on-going or had stopped. This is all news to me.”
The couple operated Prescription Buyers out of a rented suite at 1050-A North Lake Havasu Blvd. for at least a couple of years, according to building owner Ludger Stemich, who also operated his business, CADform, next to the Frenches.
The Frenches used the office to keep their product and answer the phones, he said, adding they were good tenants.
The couple moved out of the Havasu Boulevard location at the end of January 2007.
“We had heard something … that the federal government had some inquires,” Stemich said, but added he had no idea of the nature of the inquires.
While moving out of the office, French told them the reason they were closing, said Lisa McGregor, an employee at CADform.
“They were very nice people,” said McGregor.
The indictment also seeks forfeiture of assets the couple obtained through the alleged illegal activities.
According to the indictment, the Frenches incorporated Prescription Buyer’s Group in Arizona in September 2002.
In July 2004 and again in September 2004, an undercover investigator with drug maker Eli Lilly and Co. placed orders for the company’s erectile disfunction drug Cialis with Prescription Buyer’s Group. Within a month, in each case the operative received a drug labeled as “Tadalis,” according to the indictment.
Robert Reilley, Eli Lilly’s director of global security, said Wednesday that Tadalis appears to be an unapproved generic. He said Eli Lilly uses employees with law enforcement backgrounds to look for firms hawking fake or counterfeit drugs. They then turn any information they gather over to law enforcement for possible prosecution.
The problem is a big one, especially with Internet sales, where buyers have no guarantee what they’re really getting, Reilley said. He said there are legitimate pharmacies on the Web, but they’re small in number compared to those selling counterfeit or unapproved generics.
“Our recommendation to any patient is to buy through a known pharmacy, through their doctors and not blindly through the Internet where they might not know ... what they’re actually going to get at the end of the day,” Reilley said. “They’re relying solely on the appearance of a Web site, and what you see is not always what you get.”
By late 2004, federal investigators began ordering name-brand drugs and receiving mail shipments of knockoffs from the Frenches’ company, according to the indictment. They continued making buys until mid-2006.
A spokeswoman for the U.S. attorney in Phoenix said she couldn’t confirm if the company has been shut down.
The investigation was led by the FDA’s criminal investigation’s division. An FDA spokeswoman didn’t respond to calls seeking comment.
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