Healthy Skepticism Library item: 12012

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Publication type: news

Tsai J.
2 arrests made in stolen pill scheme
The Bergen Record (Bergen, New Jersey) 2007 Nov 14
http://www.pharmalot.com/2007/11/wyeth-sales-rep-arrested-for-selling-samples/

Full text:

A scheme involving stolen samples used to fill prescriptions netted millions of dollars for a Paterson drugstore owner and a salesman for a major pharmaceutical company, authorities said Tuesday.

William Stracher, 65, of Vermont, owner of Sussman Drugs in Paterson, made millions selling stolen samples of Lipitor and other prescription drugs, then laundered his profits by buying prized baseball memorabilia, said Bergen County Prosecutor John L. Molinelli.

Luther Manning, 52, a Wyeth Pharmaceuticals sales representative from Union County, stole samples that he peddled to pharmacies at cut-rate prices, the prosecutor added.

“These are men who made millions by duping manufacturers — and, ultimately, the consumer,” he said.

Authorities have no proof that Stracher and Manning colluded directly, Molinelli said. Rather, the men were arrested separately Tuesday as part of an ongoing probe involving investigators from his office, the federal Food and Drug Administration, and the U.S. Department of Health and Human Services, he said.

More arrests are expected, Molinelli said.

The prosecutor said Stracher’s scheme required him to periodically rid his shelves of some prescription drugs, including antidepressants and allergy medications. Selling the drugs to other drugstores is a legitimate practice often used by pharmacy proprietors who want to move unsold excess drugs, Molinelli said.

“He would say to another pharmacy, I’ve got too many pills of ‘X’ and I’ll sell them to you at 95 percent off,” the prosecutor said.

Stracher then restocked the shelves with “not for resale” samples stolen from Wyeth’s storage facility in Hasbrouck Heights, among other sources, Molinelli said.

The pharmacy owner then laundered the profits from those drugs by obtaining money orders and purchasing an extensive sports-memorabilia collection, which he kept at his home in Peru, Vt., Molinelli said.

“It’s pretty good stuff — a lot of old baseball stuff,” he said, adding that investigators were scouring Stracher’s Rock Bottom Lane home on Tuesday.

Representatives of Madison-based Wyeth didn’t immediately return calls for comment Tuesday.

Besides Lipitor, a cholesterol-lowering medication manufactured by Pfizer Inc., the Prosecutor’s Office also seized Ziploc bags full of Effexor, a Wyeth antidepressant.

It was difficult to determine exactly how much either Stracher or Manning netted, Molinelli said. He cited retail prices of $9 per pill for Lipitor and $16 each for cardiac medication Plavix, manufactured by Bristol-Myers Squibb.

Stracher and Manning are charged with four counts each of distribution of illegally diverted prescription drugs. They face five to 10 years in prison if convicted, as well as up to $150,000 in fines. Both were being held Tuesday at the Bergen County Jail – Stracher on $125,000 bail and Manning on $25,000 bail.

Staff Writer Carolyn Salazar contributed to this article.
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Correction

Thursday, November 15, 2007

Bergen County authorities incorrectly stated the cost of stolen prescription medication. The cardiac medication Plavix, manufactured by Bristol-Myers Squibb, retails for $3.89 per pill, a spokesman for the pharmaceutical company said.