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FedEx Indicted for Shipping Drugs from Online Pharmacies

Warrior45

Warrior45

TID Board Of Directors
Nov 9, 2012
1,042
310
http://www.businessweek.com/news/2014-07-17/fedex-indicted-for-distributing-controlled-drugs-online

FedEx Corp. (FDX:US) was accused in a federal indictment of delivering prescription pain pills, sedatives, anti-anxiety drugs and other controlled substances for illegal Internet pharmacies. A conviction could be “material,” the company said today in a regulatory filing.
The operator of the world’s largest (FDX:US) cargo airline was indicted on 15 counts of conspiracy to distribute controlled substances and misbranded drugs and drug trafficking that carry a potential fine of twice the gains from the illegal conduct, alleged to be at least $820 million for it and co-conspirators. FedEx delivered drugs to Internet pharmacies that supplied pills to customers who filled out online questionnaires and were never examined by doctors, knowing these practices violated federal and state drug laws, according to the federal indictment.
The company vowed to fight the charges, saying it can’t be responsible for the contents of the 10 million packages it transports daily and that policing customers would violate their privacy.
Story: Second-Mover Advantage: UPS Will Start Charging Higher Prices for Big Boxes Sooner Than FedEx
“FedEx is innocent of the charges,” Patrick Fitzgerald, a spokesman for the Memphis, Tennessee-based company, said yesterday in an e-mailed statement. “We will plead not guilty. We will defend against this attack on the integrity and good name of FedEx and its employees.”
Yesterday’s indictment in federal court in San Francisco comes more than a year after United Parcel Service Inc. (UPS:US) agreed to forfeit $40 million in payments it received from illicit online pharmacies under a non-prosecution agreement with the U.S. Justice Department.
[h=2]Business Tenet[/h]FedEx said last year that an indictment or prosecution in the case would threaten a basic tenet of its shipping business - - not opening packages. Revenue from online pharmaceutical shipments is a small percentage of total sales, the company previously said. FedEx reported $44.3 billion in revenue for fiscal 2013.
Story: Company News: UPS, Starbucks, Adobe Systems, Apple, SunTrust Banks
If convicted, the company could face fines, penalties, forfeiture and compliance conditions, it said today in the regulatory filing.
“Given the early stage of this proceeding, we cannot estimate the amount or range of loss, if any; however, it is reasonably possible that it could be material if we are convicted,” according to the filing with the U.S. Securities and Exchange Commission.
[h=2]Pharmacy List[/h]FedEx said yesterday it repeatedly asked the government for a list of illegal pharmacies so it would know which ones not to do business with. The U.S. never gave it such a list, it said.
Video: FedEx Q4 Earnings Beat Analysts’ Estimate
The company knew it was delivering drugs to dealers and addicts, with couriers in Kentucky, Tennessee and Virginia expressing concerns circulated to senior managers that FedEx trucks were stopped on the road by online pharmacy customers demanding packages of pills, according to the indictment. Some delivery addresses were parking lots or vacant homes, prosecutors said.
“This indictment highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior,” U.S. Attorney Melinda Haag in San Francisco said in a statement.
[h=2]Arrests, Shutdowns[/h]The illegal deliveries began in 2000, Haag said, and FedEx continued to do business with one Internet pharmacy whose manager had been arrested for violating drug laws. She said the company also served a fulfillment pharmacy that supplied Internet pharmacies that were shut by law enforcement, with their owners and doctors convicted of illegally distributing drugs.
Story: Fewer Cargo Planes, More Cargo in Passenger Planes
UPS, in its March 2013 agreement (UPS:US), acknowledged doing business with online pharmacies even after it learned they were illegally distributing controlled substances without requiring valid prescriptions.
UPS, based in Atlanta, also agreed to establish a compliance program designed to ensure such customers won’t be able to use its services to illegally distribute drugs.
Under the U.S. Controlled Substances Act, a shipping or freight company is allowed to possess and transport drugs “in the lawful and usual course of its business” without registering with drug enforcement authorities. The law regulates the manufacture and distribution of narcotics and certain other drugs and chemicals used in the illegal production of controlled substances.
Video: China Blocks Key European Shipping Pact
Consumers are turning to online pharmacies because of the convenience and privacy of purchasing medicines there, and as insurance companies encourage home delivery for long-term medications, according to the U.S. Food and Drug Administration website.
The case is U.S. v. FedEx Corp., 14-cr-00380, U.S. District Court, Northern District of California (San Francisco).
To contact the reporters on this story: Karen Gullo in federal court in San Francisco at [email protected]; Mary Schlangenstein in Dallas at [email protected]
To contact the editors responsible for this story: Michael Hytha at [email protected]; Ed Dufner at [email protected] Joe Schneider
 
Brodel154

Brodel154

MuscleHead
Jul 3, 2011
277
115
Feds trying to take money that isn't theirs. Imagine that.
 
PillarofBalance

PillarofBalance

Strength Pimp
Feb 27, 2011
17,066
4,640
This is fed trying to beat up their competition at usps. Considering usps does the same thing.
 
SJA

SJA

MuscleHead
Feb 24, 2011
611
92
This is fed trying to beat up their competition at usps. Considering usps does the same thing.

Exactly!!!! ****ing crooks is what they are. I have had business partners like this and they are the lowest of the low in my book. My brain cannot wrap around how people can sleep at night when they are using the "law" to steal from others.
 
R

rawdeal

TID Board Of Directors
Nov 29, 2013
4,314
3,476
One of the pcs of the puzzle here is FedEx drivers complaining to their higher-ups about harrassment on the street from addicts and ppl using addresses that are obviously false. This doesn't sound like the behavior of gearheads who just want ancillaries, pct, ed, etc, just the usual trash who f**k up everything they touch. Will piss me off big time if they derail the good thing we've had going that harms no one.
 
P

pumpingiron22

Senior Member
Mar 2, 2014
221
39
Just goes to show how pharmaceutical pills are horrible and are addicts. You dont hear about bodybuilders knocking over FedEx trucks lol
 
Blacken

Blacken

Senior Member
Sep 6, 2013
212
40
I've said it before, the government is the biggest organization, nobody knows how to do extortion and bend the rules better. All other organized crimes groups pale in comparison.
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
6,133
1,556
It's a sign of a broke gov't, turning over every couch cushion in the house looking for money to fund their habits. I don't think fedx ever delivered a adc or reliable pack. It was always usps
 
R

rawdeal

TID Board Of Directors
Nov 29, 2013
4,314
3,476
It's a sign of a broke gov't, turning over every couch cushion in the house looking for money to fund their habits. I don't think fedx ever delivered a adc or reliable pack. It was always usps


^^^ agreed, I think? These shippers all have confusing business relationships these days, with any 2 of the biggies who used to be rivals sometimes partnering up to let one do most of the mileage, then handing over to a 2nd one to do the local delivery. If it is as simple as you suggest, the OP may nevertheless give us a glimpse into the future as the gummint discovers what all it can get away with, and against whom. Hope I'm wrong, it does say Chicken Little on my birth cert afterall lol.
 
graniteman

graniteman

MuscleHead
Dec 31, 2011
6,133
1,556
^^^ agreed, I think? These shippers all have confusing business relationships these days, with any 2 of the biggies who used to be rivals sometimes partnering up to let one do most of the mileage, then handing over to a 2nd one to do the local delivery. If it is as simple as you suggest, the OP may nevertheless give us a glimpse into the future as the gummint discovers what all it can get away with, and against whom. Hope I'm wrong, it does say Chicken Little on my birth cert afterall lol.

USPS has a big push on , Amazon wants product delivered on Sundays now. I think they are going to actually try to get profitable and they also have friends in the fed gubamint that will help squash the competition. Dirtbags in our gubamint
 
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