2 NY Men Charged With Selling Counterfeit Drugs - KTVN Channel 2 - Reno Tahoe News Weather, Video -

2 NY Men Charged With Selling Counterfeit Drugs

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Two officials in charge of a suburban pharmaceutical company were charged Wednesday with selling more than $17 million in counterfeit or unapproved drugs, including cancer drugs and birth control.

The president and vice president of Great Neck-based Pharmalogical, Inc., William Scully, 45, of Commack, and Shahrad Rodi Lameh, 40, of Manhasset, pleaded not guilty in U.S. District Court in Central Islip. Bond was set for each at $500,000.

Attorneys for the men did not immediately return calls seeking comment.

Authorities accused Scully and Lameh of being motivated by greed.

“Instead of seeing an opportunity to alleviate suffering and cure disease, Scully and Lameh saw a chance to make money off the backs of those already fighting for their lives, selling counterfeit cancer medication to an unsuspecting clinic,” U.S. Attorney Loretta Lynch said in announcing the charges.

According to the indictment, the alleged scheme took place from early 2009 to mid-2013. They are accused of getting drugs from other countries including Turkey, Switzerland and India, and selling them in the United States despite knowing the medications didn’t have the required federal approvals.

Some of the drugs, like intrauterine birth control implant devices, were improperly labeled. Others were foreign versions of drugs that weren’t approved to be used in the U.S. by the Food and Drug Administration. For example, Rituxan is a drug approved for use in the United States to treat cancer and rheumatoid arthritis. The foreign version, Mabthera, is not.

The drugs were sold to a number of medical services providers around the country, including a cancer center in Carson City, a surgical practice in Decatur, Texas, and a women’s health care facility in Plattsburgh. The company also does business as Medical Device King.

“The defendants deliberately and repeatedly flouted the laws enacted to protect our citizens, all in order to flood the market with counterfeit and unapproved drugs and medical devices just so they could line their own pockets,” Lynch said.

If convicted, the men face up to 20 years in prison and forfeiture of their assets, as well as a $250,000 fine.  (AP)

From Carson Tahoe Health, it released the below statement:

In light of the April 30 news article regarding counterfeit drugs sold to a Carson City cancer center, Carson Tahoe Cancer Center (CTCC) is affirming that no business transactions have ever taken place with Great Neck-based Pharmalogical, Inc. All Carson Tahoe pharmaceuticals are procured through Board of Pharmacy licensed wholesalers.  CTCC adheres to the highest safety standards in the industry and is the first in Nevada to have achieved gold level accreditation through the American College of Surgeon’s Commission on Cancer.  In accordance with this status, Carson Tahoe’s policies and procedures adhere to strict guidelines, including U.S. Food and Drug Administration standards.

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