You rely on the safety and quality of the prescription drugs you purchase; never suspecting that the legitimate wholesaler may be getting scammed too.  How can this be?  A doctor purchases prescription drug at a discount rate due to his status as a health care provider.  Governing law prohibits the doctor from re-selling the drugs, and his agreement with the manufacturer provided that he would not do so. 

The doctor sold the drug to a middle man who, in turn, sold the drugs to legitimate wholesalers.  They forge the required documents that contain the false information about the source of the drug. These drugs are then sold to pharmacies and finally to you the consumer.  Where these drugs went on their trip, if the necessary standards were kept are not know.

Recently, Dr. Michael Schoenwald of Hollywood, FL pleaded guilty in Cincinnati to one count of conspiracy to commit mail and wire fraud in connection with such a drug diversion scheme.  The middle man, Gregory Pfizenmayer pleaded guilty to one charge of conspiracy to commit mail and wire fraud in February 2011 and awaits sentencing. Schoenwald received compensation from Pfizenmayer for the prescription drugs through wire transfers, and in turn paid his co-conspirator a share of the profits.  All told, Schoenwald, Pfizenm ayer and their co-conspirator sold over $1 million dollars’ worth of prescription drugs through this scheme.

“Diversion of prescription drugs casts doubt on the safety and quality of the medicines people rely on every day,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division.  “As this criminal prosecution demonstrates, we are committed to fighting these diversion schemes so that our prescription drugs in the United States remain the safest in the world.”

Linda Webb, Fraud Expert says that organized crime rings will go to great lengths to pull people into a fraudulent scam. The Fraud Dog says that organized crime rings have as many layers to their scams as an onion. Pull back one layer of the onion and you only see a small part of the complexity of the suspect groups. These suspect groups can cost us, the consumer millions of dollars. Don’t be afraid to speak out says the Fraud Dog, and report fraud.

If you are in need of fraud investigation services, contact Contego Services Group today. Under the leadership of Linda Webb, The Fraud Dog, Contego has the knowledge and expertise to help you resolve your fraud case. Whether it’s mortgage fraud, insurance fraud, workers compensation fraud or any other type of fraudulent activity, Contego and The Fraud Dog will work together to help you and your company. For more information, call 1-855-WE-SWARM today.

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