Drug Compounding Company Execs Hit with RICO and Second-Degree Murder Charges

In an unprecedented move, the U.S. Attorney for the District of Massachusetts indicted two pharmacy company executives on 25 RICO predicate acts of second-degree murder and charged a total of 14 individuals with mail fraud, wire fraud, conspiracy to defraud the government, criminal contempt, racketeering and violations of the Food, Drug and Cosmetic Act.

In United States v. Cadden, the charges against New England Compounding Center (“NECC”) and its executives — owner Barry J. Cadden and supervisory pharmacist Glenn A. Chin — stem from a 2012 outbreak of fungal meningitis tied to contaminated vials of preservative-free methylprednisolone acetate (MPA) made by NECC. More than 750 cases of fungal meningitis were reported in 20 states; a total of 64 people died.

In charging Cadden and Chin with criminal RICO second-degree murder, the government said the two NECC executives knew the company’s MPA had been manufactured in unsanitary and unsafe conditions and showed “an extreme and appalling indifference to human life” when they authorized its distribution to the public. The second-degree murder charges stem from patients who died in seven states: Florida, Indiana, Maryland, Michigan, North Carolina, Tennessee and Virginia.

A total of 131 indictments were handed down involving 14 individuals tied to what the government called a racketeering scheme by the company and its marketing division to make and sell unsafe drugs and conceal the wrongdoing from the Food and Drug Administration. The government claims that the individuals charged comprised a criminal enterprise “associated in fact” under the Racketeer Influenced and Corrupt Organizations Act (“RICO”).

Whether you are facing a serious federal white-collar prosecution, a state murder charge, or misdemeanor charges, The Cogdell Law Firm has the experience, knowledge and reputation you want for your legal team. When results matter most, contact Dan Cogdell at (713) 426-2244 or info@cogdell-law.com.