Falsely Represented That Company Was Selling Prescription Drugs That Complied
with Regulations in Us, Canada and the UK
Andrew Strempler, a Canadian citizen, pleaded guilty today in the
Southern District of Florida for his role in a scheme to defraud
consumers purchasing pharmaceuticals online, the Justice Department
announced. Strempler faces up to five years in prison, a forfeiture of
$300,000, a fine and restitution.
Strempler pleaded guilty to conspiracy to commit mail fraud in
connection with his role as owner and president of Mediplan Health
Consulting Inc., a Canadian company, that also operated under the name
RxNorth.com.
RxNorth was an Internet, mail and telephone order pharmacy,
through which Strempler and others marketed and sold prescription drugs
to residents of the United States.
According to court documents, the FDA advised Strempler in a 2001 letter
that his prescription drug sales would be illegal in the United States
if the drugs were not FDA approved. The FDA letter explained that the
FDA approves drugs based on evidence that they are safe and effective,
and that the quality of drugs from foreign sources could not be assured.
Strempler and his co-conspirators unlawfully enriched themselves by
selling prescription drugs to individuals in the United States, falsely
representing that RxNorth was selling safe prescription drugs in
compliance with regulations in Canada, the United Kingdom and the United
States.
The information further alleges that Strempler obtained the
prescription drugs from various other source countries without properly
ensuring the safety or authenticity of the drugs. In fact, the
information alleges that some of the drugs sold by Strempler included
counterfeit drugs.
Strempler caused prescription drugs from foreign countries to be shipped to a facility that Strempler operated in the Bahamas.
Prescription orders made through RxNorth were then filled at the
Bahamas facility, with labels on the vials and drug cartons stating
they had been filled by RxNorth in Canada.
Strempler then used indirect routes involving multiple
countries to ship packages with prescription drugs from the Bahamas to
individuals in the United States.
The information states that shipments mailed from the Bahamas,
containing packages addressed to individuals in the Southern District of
Florida, included counterfeit prescription drugs.
“Although many Internet websites appear to offer good deals on
pharmaceuticals, consumers can never be certain that drug products
ordered online are the same products approved by the FDA as safe and
effective,” said Acting Assistant Attorney General Stuart F. Delery.
“Today’s guilty plea represents an important step in our
continued fight against counterfeit pharmaceuticals—particularly those
trafficked over the Internet.”
“Strempler and his co-conspirators sold prescription drugs to customers
in the United States falsely representing that the drugs were in
compliance with regulations in Canada, the United Kingdom and the United
States,” said Wifredo A. Ferrer, U.S. Attorney for the Southern
District of Florida. “In fact, however, Strempler sold these drugs
without properly ensuring the safety or authenticity of the drugs.
Indeed, some of the drugs sold by Strempler included counterfeit drugs.”
U.S. District Judge Jose E. Martinez presided over the change of plea hearing.
This case was prosecuted by Assistant U.S. Attorney Ana Maria Martinez
of the U.S. Attorney’s Office for the Southern District of Florida, and
Roger J. Gural of the Justice Department’s Consumer Protection Branch.
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