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Florida Brothers Convicted of Black-Market HIV Drugs Scheme
A federal jury in Fort Lauderdale convicted two Maryland brothers, Patrick Boyd, 47, and Charles Boyd, 43, on October 29 for their roles in a scheme to purchase and resell more than $92 million worth of illegally obtained misbranded HIV drugs.
The brothers owned and operated a pharmaceutical wholesale company called Safe Chain Solutions. Their co-owner and co-defendant, Adam Brosius, previously pleaded guilty to conspiring to commit wire fraud with the Boyds.
U.S. Attorney Jason A. Reding Quiñones said, ‘This case exposed a reckless disregard for human life. The defendants put profit ahead of patient safety, moving more than $92 million in tampered, black-market HIV medication through pharmacies across the country.’
Trial evidence showed that the Boyds conspired with at least five black-market suppliers to purchase HIV drugs obtained through patient ‘buyback schemes.’ The Boyds then resold the drugs to thousands of pharmacies nationwide, while using falsified paperwork to make the medications appear to have been purchased from legitimate distributors.
One of their suppliers, Peter Khaim, owner of Boulevard 9229, testified that he purchased HIV drugs from patients on the street, removed the original prescription labels, and packaged the bottles in cardboard boxes before shipping them to the Boyds. Khaim also admitted to shipping approximately $500,000 worth of HIV medications in a single cardboard box to Safe Chain Solutions.
The Boyds purchased and resold more than $35 million in black-market HIV drugs from Boulevard 9229 and more than $42 million from another supplier, Gentek, whose leaders were based in Miami. One Gentek leader has already been convicted and sentenced to 15 years in prison.
Pharmacies repeatedly complained that the drugs purchased from Safe Chain Solutions were dirty, tampered with, or contained the wrong medication. On at least a dozen occasions, pharmacies reported receiving bottles labeled as HIV medication that instead contained other drugs, including Seroquel, an anti-psychotic, and pain medication.
A former attorney for the Boyds testified that they concealed and misrepresented material information while seeking legal advice about pharmacy complaints and reporting obligations to the Food and Drug Administration (FDA).
The Boyds failed to report numerous incidents to the FDA involving pharmacies that had received incorrect or tampered medications.
Key Facts
- State: Florida
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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