Michael Arnold, Controlled Substance Distribution, California 2007

Nine Sentenced for Illegally Distributing Controlled Substances Over the Internet

SAN FRANCISCO - In a significant blow to online pharmacy scams, nine defendants were sentenced over the last two days for their roles in illegally distributing controlled substances to customers who bought the drugs from illicit Internet pharmacies. United States Attorney Melinda Haag and Drug Enforcement Administration Acting Special Agent in Charge Bruce C. Balzano announced the sentencing.

The defendants were also collectively ordered to forfeit more than $94 million in illegal proceeds.

“Illegal Internet pharmacies bring significant harm to communities across the nation by making controlled substances available to teenagers, addicts, and others who are endangered when these drugs are obtained without proper medical supervision. Anyone who engages in this criminal activity can expect to be prosecuted and held accountable for their conduct,” stated U.S. Attorney Haag.

“Prescription drug abuse has risen to alarming levels, often times leaving a trail of devastation behind and negatively impacting our communities. The individuals sentenced this week were involved in online pharmacy schemes that were illegally distributing controlled substances. DEA will aggressively pursue all who choose profits over the health and safety of the public,” stated DEA Acting Special Agent in Charge Balzano.

Michael Arnold, 42, of Boca Raton, Florida, was sentenced to 5 years in prison for his role as the organizer and leader of the Pitcairn Internet pharmacy. From 2003 through 2007, Pitcairn sold more than 14 million doses of Schedule III and IV controlled substances, earning over $69 million in its four years of operation using websites such as ezdietpills.net, pillsavings.com, and doctorrefill.net. Arnold laundered Pitcairn’s illegal proceeds through accounts in at least eight different countries, including Switzerland, Liechtenstein, the Netherlands, Canada, Panama, the Bahamas, St. Kitts & Nevis, and Curacao. Arnold was ordered to forfeit $69,692,488.39.

Christopher Napoli, 46, of Newtown Square, Pennsylvania, was sentenced to 4 years in prison for his role as the founder and leader of the Pharmacy USA/ SafescriptsOnline (“Safescripts”) Internet pharmacy. From November 2004 through December 2006, Safescripts sold more than 13 million doses of Schedule III and IV controlled substances, earning more than $24 million in its two years of operation. Napoli paid affiliates located in foreign countries, including Argentina, India, the Dominican Republic, Panama, Latvia, Lithuania, Romania and Poland to market drugs to potential customers using websites and call centers that placed outbound calls pushing the sale of the drugs listed on the Safescripts website. Napoli was ordered to forfeit $24,609,611.48.

Daniel “DJ” Johnson, 40, of Pekin, Illinois, was sentenced to 3 years in prison for his role as the software developer and manager for Safescripts. From his father’s business, Internet Commerce Corporation, Johnson assisted Napoli with the day-to-day operation of Safescripts, managing the maintenance and development of the software and hardware used to process drug orders, as well as the relationships between Safescripts at the brick-and-mortar pharmacies that filled the drug orders and shipped the pills to customers. Johnson was ordered to forfeit $835,540.

Jeffrey Herholz, 45, of Fayetteville, North Carolina, was sentenced to 2 years in prison for his role as the owner and operator of Kwic Fill, a brick-and-mortar pharmacy located in Fayetteville, North Carolina, that filled drug orders exclusively for Internet pharmacies, including Pitcairn and Safescripts. From February through April 2006, Kwic Fill shipped more than 7 million doses of Schedule III and IV controlled substances to customers located in all 50 states. Kwic Fill earned more than $3 million in criminal proceeds in its three months of operation. Herholz was ordered to forfeit $3,386,829.

Joseph Carozza, 67, of West Orange, New Jersey, was sentenced to 2 ½ years in prison for his role as one of the doctors who reviewed prescriptions and prescribed controlled substances.

Source: https://www.justice.gov/usao-ndca/pr/nine-sentenced-illegally-distributing-controlled-substances-over-internet