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South Florida Ring Busted in Multi-Million Dollar Pharma Diversion
MIAMI, FL – Federal prosecutors have added five more names to the growing list of defendants in a brazen scheme to flood the market with illegally obtained prescription drugs. The operation, which has now ensnared 14 individuals, allegedly funneled millions of dollars worth of diverted pharmaceuticals – including drugs for HIV, cancer, and mental illness – through a network of shell companies and fraudulent paperwork.
The latest indictments target South Florida residents Stephen Manuel Costa, 37, Leah Solomon, 51, Rafael Angel Romero, 50, Ruben Reynaldo Rodriguez Diaz, 43, and David Ramirez Garcia, Sr., 58, of Phoenix, Arizona. All are charged with money laundering, mail fraud, and violations of the Federal Food, Drug, and Cosmetics Act. Authorities allege the group purchased diverted drugs – stolen or fraudulently obtained – at drastically reduced prices before laundering them back into the legitimate supply chain, marking them up for unsuspecting pharmacies and patients.
This isn’t some small-time operation. According to the Second Superseding Indictment, the co-conspirators didn’t just move product; they acquired assets. The group allegedly purchased two wholesale pharmaceutical companies to facilitate the scheme and even chartered a private plane to transport the diverted drugs. The scale of the fraud points to a sophisticated, well-funded criminal enterprise preying on vulnerable patients and undermining the integrity of the pharmaceutical industry.
Costa, Romero, and Rodriguez Diaz were taken into custody this morning and are scheduled to appear before U.S. Magistrate Judge Lauren Louis this afternoon. Garcia Sr. and Solomon will have their initial court appearances on a later date. The investigation, dubbed “Operation Southern Hospitality,” is being spearheaded by the Organized Crime Drug Enforcement Task Force (OCDEF), a multi-agency partnership dedicated to dismantling large-scale criminal organizations.
The FBI Miami Field Office and the FDA’s Office of Criminal Investigations (OCI) led the investigation, receiving support from a broad coalition of federal, state, and local agencies, including the U.S. Secret Service in Miami. Assistant U.S. Attorneys Frank Tamen and Walter M. Norkin are prosecuting the case, with Nicole Grosnoff handling asset forfeiture. Prior to these new charges, a press release detailing initial arrests was published on June 11, 2021, and can be found here: https://www.justice.gov/usao-sdfl/pr/two-ceos-wholesale-pharmaceutical-companies-and-two-owners-bank-accounts-used-money.
It’s crucial to remember that an indictment represents allegations, not proof of guilt. All defendants are presumed innocent until proven guilty in a court of law. However, the scope of this operation, and the sheer volume of diverted pharmaceuticals involved, suggests a significant threat to public health and a calculated disregard for the law. The Grimy Times will continue to follow this case as it unfolds.
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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