New Jersey Pharmacists Sentenced for Role in Prescription Drug Diversion Scheme, Reports U.S. Attorney
October 27 2003 - 12:30PM
PR Newswire (US)
New Jersey Pharmacists Sentenced for Role in Prescription Drug
Diversion Scheme, Reports U.S. Attorney BOSTON, Oct. 27
/PRNewswire/ -- Two New Jersey pharmacists were placed on probation
Thursday, October 23, 2003, in federal court for their
participation in a scheme in which more than $500,000 of
prescription drugs and other pharmaceuticals were diverted from
Beth Israel Deaconess Medical Center (BIDMC). United States
Attorney Michael J. Sullivan; Mark R. Trouville, Special Agent in
Charge of the U.S. Drug Enforcement Administration in New England;
Mark Dragonetti, Resident Agent in Charge of the U.S. Department of
Food and Drug Administration's Office of Criminal Investigations in
New England; Joseph Moraski, Special Agent in Charge of the
Department of Health and Human Service's Office of Inspector
General; and Christine C. Ferguson, Commissioner of the
Massachusetts Department of Public Health, announced that JOSEPH E.
CHEBLI, age 33, of Scotch Plains, New Jersey, and GRACE DUBE, age
31, of Warren, New Jersey, were sentenced by U.S. Magistrate Judge
Lawrence P. Cohen. CHEBLI was placed on 2 years' probation, fined
$250, and ordered to make restitution in the amount of $15,514 to
BIDMC. DUBE was placed on probation for one year, fined $500, and
ordered to make restitution in the amount of $1,443 to BIDMC. Both
CHEBLI and DUBE, who have surrendered their pharmacists' licenses,
pleaded guilty in August of this year to criminal Informations
charging them with purchasing prescription drugs previously
purchased by a private hospital. At the earlier plea hearing, the
prosecutor told the Court that, had the case proceeded to trial,
the Government's evidence would have proven that DUBE was employed
as a co-op pharmacy student at Beth Israel Deaconess Medical Center
in or about 1990 through 1993. During her employment, DUBE met Mark
Catanzano, who had been employed in various capacities in the
pharmacy department of the hospital since 1976. At the time,
Catanzano was a pharmacy materials coordinator, and in that
capacity, ordered pharmaceuticals to be used by the hospital and
directed payment be made for such purchases. DUBE left BIDMC in
1993, returning to her native New Jersey in 1994 to work there as a
pharmacist. Occasionally during the course of her employment at
BIDMC, and continuing through about May 2002, when DUBE was working
as a pharmacist in New Jersey, DUBE purchased insulin, including
insulin for which a prescription is required, and occasionally
other prescription drugs, from Catanzano for relatives. She paid
Catanzano for the drugs, which could be obtained by the hospital at
a significant discount, and believed Catanzano was reimbursing
BIDMC. DUBE met CHEBLI, another New Jersey pharmacist who worked in
a neighboring town, and they developed a professional relationship.
In early 1999, CHEBLI opened his own pharmacy in Scotch Plains, New
Jersey. Sometime over the course of their dealings with each other,
DUBE told CHEBLI that she had obtained insulin from Catanzano at a
low price. In 2001, DUBE contacted Catanzano and told him she had a
friend who operated an independent pharmacy and who was interested
in obtaining insulin from him. She asked if Catanzano would be
willing to get the insulin and if Catanzano would get in trouble
with the hospital. Catanzano said he could do it and that there
would not be a problem with the hospital. In about August 2001,
Catanzano shipped about 30 vials of several different types of
insulin to DUBE's residence in New Jersey and she delivered the
package to CHEBLI's pharmacy. She paid Catanzano from her own funds
and CHEBLI reimbursed her. DUBE did this a second time in September
2001. After the second order, CHEBLI and Catanzano dealt directly
with each other, without DUBE's involvement, for shipments of
insulin, and numerous prescription drugs. Over the course of the
next several months, CHEBLI ordered pharmaceuticals on behalf of a
friend who owned and operated another New Jersey pharmacy and
wholesale business. Catanzano filled the orders and CHEBLI's friend
wrote checks to Catanzano in payment, which CHEBLI mailed to
Catanzano. Although CHEBLI believed the hospital was being
reimbursed, in fact, Catanzano was pocketing the money he received
for the drugs he diverted through CHEBLI. Most of the
pharmaceuticals went to CHEBLI's friend, although CHEBLI did keep
some of the drugs, for which his friend charged him. CHEBLI also
shared in the profits his friend made from sales of these
pharmaceuticals. Mark A. Catanzano, age 49, of 970 Whipple Road,
Tewksbury, Massachusetts, was charged in July 2003 in a 44-count
indictment with conspiracy, unlicensed wholesale distribution of
prescription drugs, sale of prescription drugs which had been
purchased by a hospital, fraud against a federally funded
organization, engaging in monetary transactions in property derived
from unlawful activity, and false statements in connection with the
scheme. The indictment alleges that Catanzano received payment of
about $415,000 which he used to refinance and pay down the mortgage
on his Tewksbury home, for improvements to the home, for a new car,
for a timeshare in Aruba and other personal items. The charges
against Catanzano are still pending. The indictment further alleges
that the loss to BIDMC was about $548,000 because Catanzano often
charged CHEBLI less than the price BIDMC paid for the
pharmaceuticals. The case was investigated by the U.S. Food and
Drug Administration's Office of Criminal Investigations; the U.S.
Department of Health and Human Services' Office of Inspector
General; the U.S. Drug Enforcement Administration's Tactical
Diversion Squad; and the Massachusetts Department of Public
Health's Division of Food and Drugs. It is being prosecuted by
Assistant U.S. Attorney Sandra S. Bower in Sullivan's Health Care
Fraud Unit. DATASOURCE: U.S. Attorney CONTACT: Samantha Martin of
U.S. Attorney's Office, +1-617-748-3139
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