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BOSTON, MA – A Lexington Doctor’s Downfall
A Lexington, Mass. doctor, Rahim Shafa, 66, was convicted today following a 14-day jury trial in connection with an international money laundering scheme involving importing illegal, misbranded drugs.
Shafa, a psychiatrist who owned and operated Novel Psychopharmacology, was convicted of international money laundering, illegally importing merchandise contrary to law, and receiving and delivering misbranded drugs.
According to the indictment, Shafa engaged in an international money laundering scheme to purchase naltrexone pellet implants and disulfiram pellet implants and injections from Hong Kong. The implantable pellet form of the drug is not approved by the FDA.
Shafa falsified shipping documents to conceal that the packages containing the drugs were shipped from Hong Kong to Shafa in Massachusetts. For example, packages containing naltrexone pellet implants were falsely declared as ‘plastic beads in plastic tubes’ in shipping documents.
Shafa sold these drugs to patients of Novel and implanted them into patients’ bodies, without fully understanding the risks of the drugs. Patients testified at trial regarding infections and complications they experienced from the pellet implantation procedure.
Shafa was a part of a superseding indictment in June 2021 and was indicted by a federal grand jury in August 2020. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for May 15, 2024.
The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of importing merchandise contrary to law provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000. The charge of receiving and delivering a misbranded drug provides for a sentence of up to one year in prison, one year of supervised release, and a fine of $1,000.
Acting U.S. Attorney Joshua S. Levy, FDA SAC Fernando McMillian, and HHS-OIG SAC Roberto Coviello made the announcement today. Valuable assistance was provided by the Massachusetts State Police, the Milford Police Department, and the Lexington Police Department. Assistant U.S. Attorneys John T. Mulcahy, Howard Locker, and Kaitlin J. Brown of the Criminal Division are prosecuting the case.
Shafa’s conviction is a significant blow to those who exploit the healthcare system for personal gain. The public can be assured that those who put profits above people’s health will be held accountable.
Key Facts
- State: Massachusetts
- Category: Drug Trafficking|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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