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U.S. NEWS Wednesday 24 april 2019

Feds: Ex-CEO is first drug exec indicted in opioid crisis

2016, Berman said. During nation’s ten largest distribu- pendent pharmacies.
the same period, the com- tors of pharmaceutical The Rochester, New York-
pany’s internal compliance products, with over 1,300 based company will pay
office flagged 8,300 orders pharmacy customers and a $20 million fine to resolve
but reported just four to the over $1 billion in revenue a civil complaint and con-
U.S. Drug Enforcement Ad- per year. The company sented to three years of
ministration. says the vast majority of its independent compliance
The company is one of the customers are small, inde- monitoring.q

An investigator with the US Attorney for the Southern District of
New York, stands next to a chart during a news conference
announcing charges against Rochester Drug Co-Operative
Laurence Doud III, Tuesday, April 23, 2019, in New York.
Associated Press
By MICHAEL R. SISAK man said. Rochester Drug
Associated Press Co-Operative and another
NEW YORK (AP) — The for- former executive were also
mer head of a drug dis- charged. The company
tributor has been indicted entered into a deferred
on what federal prosecu- prosecution agreement,
tors say are the first crimi- and former compliance
nal charges against a drug chief William Pietruszewski
company executive to reached a cooperation
stem from the opioid crisis. agreement. “This prosecu-
The indictment unsealed tion is the first of its kind:
Tuesday alleges former Executives of a pharma-
Rochester Drug Co-Oper- ceutical distributor and the
ative CEO Laurence Doud distributor itself have been
III ordered subordinates charged with drug traffick-
to ignore red flags about ing — trafficking the same
certain pharmacy custom- drugs that are fueling the
ers to maximize company opioid epidemic that is
revenues and his own pay, ravaging this country,” Ber-
which more than doubled man said. Doud and other
between 2012 and 2016 top executives “made the
as the company’s sales of deliberate decision” not to
drugs like oxycodone and investigate, monitor or alert
fentanyl skyrocketed. federal regulators about
Doud, 75, surrendered to pharmacy customers they
authorities in New York City knew were providing opi-
and is awaiting arraign- oids to people who wanted
ment on two counts of them for non-medical uses,
conspiracy. His lawyer said the indictment alleges.
he would fight the charges. Rochester Drug Co-Oper-
If convicted, he faces a ative’s oxycodone sales
mandatory minimum sen- increased by 800% and its
tence of 10 years in prison, fentanyl sales jumped by
U.S. Attorney Geoffrey Ber- 2,000% between 2012 and