Allen Smith, Trafficking Counterfeit Veterinary Products, Texas 2017

HOUSTON, TX – Allen Smith, 50, of Phoenix, Arizona, was sentenced to 37 months in federal prison on February 6, 2017, for his role in a large-scale operation trafficking in counterfeit pet products. The sentence, handed down by U.S. District Judge David Hittner of the Southern District of Texas, also included a hefty $867,150 restitution order and a $42,269 forfeiture of illicit proceeds.

Smith admitted to aiding and abetting the importation of over $1 million worth of veterinary products not intended for the U.S. market. These products, including popular flea and tick treatments like Frontline, Frontline Plus (manufactured by Merial Pharmaceutical Company), and Advantage and K9 Advatix (manufactured by Bayer), were then illegally distributed throughout the country with counterfeit labels.

The scheme deliberately misled retailers and consumers into believing the products had received the necessary authorization and approval from the Environmental Protection Agency (EPA) for sale in the United States. This deception not only constituted a significant economic crime but also raised serious concerns about the safety and efficacy of the products used on pets. Authorities fear the unapproved products may not have contained the proper ingredients or undergone adequate testing, potentially endangering animal health.

The investigation, a collaborative effort between the Food and Drug Administration – Office of Criminal Investigations (FDA-OCI), U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and the EPA, revealed a sophisticated operation designed to circumvent U.S. regulations and profit from the sale of substandard goods. The case was prosecuted by Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Jennifer Lowery of the Southern District of Texas, with crucial assistance from the U.S. Attorney’s Office of the Central District of California and the CCIPS Cybercrime Lab.

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Legal Ramifications

Smith was found guilty of violating Title 18 U.S. Criminal Code, specifically 18 U.S.C. 2320(a), which addresses the trafficking of counterfeit goods. This federal statute carries a maximum sentence of 10 years in prison and significant financial penalties. In Smith’s case, the 37-month sentence, combined with the restitution and forfeiture orders, reflects the severity of the offense and the scale of the financial harm caused.

Key Facts

Defendant: Allen Smith, 50, of Phoenix, Arizona
Crime: Trafficking in counterfeit pet products
State: Texas
Year: 2017
Sentence: 37 months in prison
Restitution: $867,150
Forfeiture: $42,269
Products Involved: Frontline, Frontline Plus, Advantage, K9 Advatix
Statute Violated: 18 U.S.C. 2320(a)

Authorities warn that the trafficking of counterfeit veterinary products remains a persistent threat, and consumers are urged to purchase these items only from reputable sources to ensure the safety and well-being of their pets. The investigation into potential co-conspirators and the full extent of the distribution network remains ongoing.

Source: EPA ECHO Enforcement Case Database

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