1. Dear Drugs-Forum readers: We are a small non-profit that runs one of the most read drug information & addiction help websites in the world. We serve over 4 million readers per month, and have costs like all popular websites: servers, hosting, licenses and software. To protect our independence we do not run ads. We take no government funds. We run on donations which average $25. If everyone reading this would donate $5 then this fund raiser would be done in an hour. If Drugs-Forum is useful to you, take one minute to keep it online another year by donating whatever you can today. Donations are currently not sufficient to pay our bills and keep the site up. Your help is most welcome. Thank you.
    PLEASE HELP
  1. ZenobiaSky
    FedEx is facing drug-trafficking charges after a federal grand jury in San Francisco indicted the overnight shipping company, accusing it of conspiring to deliver prescription drugs for illegal Internet pharmacies.

    The indictment says FedEx knew for a decade that such pharmacies used their services. FedEx took steps to protect its business by setting up special credit policies for Internet pharmacies so it wouldn't lose money if police shut the sites down, the indictment says.

    FedEx ignored nearly a decade of warnings from the Drug Enforcement Administration, the Food and Drug Administration and members of Congress, the indictment says.

    "FedEx knew that it was delivering drugs to dealers and addicts," the Justice Department said in a press release.

    Federal prosecutors have summoned FedEx to federal court in San Francisco for a hearing July 29.

    No FedEx officers were charges.

    FedEx is innocent of the charges, said Patrick Fitzgerald, senior vice president for marketing and communications, in a written statement. Fitzgerald said FedEx has cooperated for decades with law enforcement agencies to stop illegal drug activity.

    "We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity," he said. "Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far the government has declined to provide such a list."

    Fitzgerald said it is unreasonable to expect FedEx to take responsibility for the legality of the contents of the 10 million packages it delivers each day.

    "We are a transportation company — we are not law enforcement," he said.

    FedEx's couriers in Kentucky, Tennessee and Virginia told senior FedEx managers that they worried for their safety. Delivery addresses for the pills included parking lots, schools and vacant homes where carloads of people would await the parcels, the indictment said.

    "FedEx trucks had been stopped on the road by Internet pharmacy customers demanding packages of pills," it said.

    The illegitimate Internet pharmacies that emerged on the Web starting in 1998 required that patients do little more than fill out a questionnaire describing an ache or pain to get an online prescription.

    Prosecutors say officials of the DEA and FDA and members of Congress warned FedEx at least six times since 2004 that illegal Internet pharmacies used the global shipper to deliver drugs.

    The indictment says FedEx knowingly shipped drugs for two illegal Internet pharmacies, the Chhabra-Smoley Organization and Superior Drugs. In 2003, the DEA shut down RxNetwork, one of the Chhabra-Smoley businesses, and arrested Vincent Chhabra on charges of violating the Controlled Substances Act.

    "FedEx learned of these events promptly after they occurred," the indictment says, but the shipper continued to deliver for other businesses run by the same group.

    The credit policy, circulated to FedEx directors on July 6, 2006, and included in the indictment, explained the policy's rationale: "Many of these companies operate outside federal and state regulations over the sale of controlled drugs. ... Drugs purchased from these sites may be diluted or counterfeit. Several sites have been shut down by the government without warning or simply disappeared, leaving large balances owing to FedEx."

    Donna Leinwand Leger
    USA TODAY
    8:35 p.m. EDT July 17, 2014
    http://www.usatoday.com/story/money...rafficking-drugs-for-web-pharmacies/12808643/

    The Newhawks Crew

Comments

  1. Phenoxide
    FedEx Indicted in Prescription Drug Shipping Probe

    WASHINGTON — The Justice Department on Thursday charged FedEx Corp. (FDX) with conspiracy to distribute controlled substances for its alleged role in transporting painkillers and other prescription drugs that had been sold illegally.

    If found guilty, FedEx faces a potential fine of at least $1.6 billion, along with restitution and forfeiture of profits, according to a statement from the U.S. attorney's office in the Northern District of California.

    In a 15-count indictment filed in San Francisco, federal prosecutors say that beginning in 2004 the company repeatedly ignored warnings from the government it was breaking the law by shipping drugs ordered from online pharmacies that dispensed them to anyone who filled out an online questionnaire. Among the charges included in the indictment are conspiracy to distribute controlled substances, conspiracy to distribute misbranded drugs, distribution of controlled substances and misbranding drugs.

    The charges come after a yearslong investigation by the Drug Enforcement Administration and federal prosecutors in Northern California into the role of shipping companies in the illicit prescription-drug trade.

    Prosecutors say FedEx made at least $820 million shipping the drugs. If found guilty, the company faces a potential maximum fine of twice that. FedEx has been summoned to appear in court July 29 in San Francisco.

    FedEx denied wrongdoing in a statement Thursday evening, saying the company would plead not guilty.

    "We will defend against this attack on the integrity and good name of FedEx and its employees," Patrick Fitzgerald, senior vice president of marketing and communications, said. The company has a history of close cooperation with law enforcement, he added.

    The indictment says FedEx went out of its way to keep doing business with online pharmacies and collect payments from them, despite efforts by the DEA and the Food and Drug Administration to shut them down.

    In 2003, when one pharmacy had its license suspended for selling illegal prescriptions, a FedEx employee wrote in an email that after being notified, the FedEx account executive said that "[customer] has to increase weekly [payment] to 150,000 to ensure shipping privileges."

    By 2004, the indictment says, FedEx's revenue was taking a hit because online pharmacies were being shut down by the DEA, then left unable to pay their bills. So FedEx set up a special "Online Pharmacy Credit Policy," approved by its chief financial officer along with other executives.

    By 2006, it required online pharmacies to provide a security deposit or a letter of credit from a bank. Attached to the new policy circulated to FedEx managing directors of sales was an explanation. "Many of these companies operate outside federal and state regulations over the sale of controlled drugs," the note said. "Several sites have been shut down by the government without warning or simply disappeared leaving large balances owing to FEDEX."

    FedEx has repeatedly asked for a list of online pharmacies that are illegally shipping prescription drugs, Mr. Fitzgerald said. "Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately," he added.

    Mr. Fitzgerald said the indictment threatens the privacy of FedEx's customers through asking it to assume criminal liability for the contents of the more than 10 million packages it ships each day.

    "We are a transportation company—we are not law enforcement," Mr. Fitzgerald added.

    In its annual corporate filing this week, FedEx said it had responded to grand jury subpoenas in both June 2008 and August 2009, as well as to some additional requests in relation to those subpoenas.

    "We believe that our employees have acted in good faith at all times. We do not believe that we have engaged in any illegal activities and will vigorously defend ourselves in any action that may result from the investigation," FedEx said in the filing.

    FedEx executives in late 2012 told The Wall Street Journal that the company had been informed it could soon face criminal charges.

    At the time, they called the investigation "absurd and deeply disturbing," adding that the government was hoping to deputize FedEx delivery people to catch criminals. The company said the shipments in question involved legal drugs with a valid prescription from online pharmacies licensed by the Drug Enforcement Administration, something which FedEx said it had no way of determining which might be illegal.

    United Parcel Service Inc., UPS +1.14% which was also originally targeted in the probe, signed a nonprosecution agreement in March 2013. It agreed to pay $40 million, admitted to a "statement of facts" about their conduct and started an online pharmacy compliance program, according to a quarterly filing.

    The agreement "did not have a material impact" on results, UPS added.

    Wall Street Journal
    July 17th 2014
    http://online.wsj.com/articles/fede...lled-substances-prescription-drugs-1405637242
  2. Phenoxide
    ​FedEx faces trial for drug trafficking

    [IMGR="white"]http://www.drugs-forum.com/forum/attachment.php?attachmentid=39551&stc=1&d=1405886550[/IMGR]Shipping giant Federal Express has been indicted for drug trafficking for illegal online pharmacies and conspiracy to traffic controlled substances by the US Department of Justice.

    “FedEx knew that it was delivering drugs to dealers and addicts,” said the press release from the US Attorney’s Office of the Northern District of California released on Thursday.

    Among the 15 counts, the company stands charged with “conspiracies to traffic in controlled substances and misbranded prescription drugs for its role in distributing controlled substances and prescription drugs for illegal internet pharmacies,” according to the statement.

    It said that FedEx was aware that its services were being utilized by illegal drug companies and the transportation of such substances, and had been for more than a decade.

    “From at least as early as 2004, DEA, FDA and members of Congress and their staff informed FedEx that illegal internet pharmacies were using its shipping services to distribute controlled substances and prescription drugs in violation of the Controlled Substances Act (CSA), Food, Drug and Cosmetic Act (FDCA), and numerous state laws,” read the indictment.

    Substances included Phendimetrazine (Schedule III); Ambien, Phentermine, Diazepam, and Alprazolam (Schedule IV) – all to “customers who had no legitimate need.”

    FedEx denied wrongdoing in a statement Thursday evening, with a spokesman saying that the company would be pleading not guilty to the charges.

    “We will defend against this attack on the integrity and good name of FedEx and its employees,” Patrick Fitzgerald, senior vice-president of marketing and communications, said in a statement.

    He added that the company was a “transportation company – not law enforcement.”

    “We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity,” he said.

    “Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far the government has declined to provide such a list.”

    In 2012, there were indications, however, that both FedEx Inc. and United Parcel Service Inc. (UPS) could be targeted as part of an ‘expanding crackdown’ against illegal prescription painkiller sales, according to a contemporary Wall Street Journal report.

    FedEx called the investigation ‘absurd and deeply disturbing’, accusing the US government of attempting to delegate some form of law enforcement to delivery people.

    The company is due to appear in court on July 29.

    Russia Today
    18th July 2014 (updated 20th July 2014)
    http://rt.com/usa/173832-fedex-drug-trafficking-indicted/
  3. Phenoxide
    FedEx Response to Department of Justice Charges

    Statement from Patrick Fitzgerald, Senior Vice President Marketing and Communications, FedEx

    FedEx is innocent of the charges brought today by the Department of Justice. We will plead not guilty. We will defend against this attack on the integrity and good name of FedEx and its employees.

    FedEx has a 42-year history of close cooperation with law enforcement agencies. We’re proud to say that we have partnered with the FBI, the Department of Homeland Security, DEA, and other federal, state and local law enforcement teams around the world to help stop illegal drug activity and bring criminals to justice. These efforts include providing assistance to the DEA in combatting rogue internet pharmacies. We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity. Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far the government has declined to provide such a list.

    FedEx transports more than 10 million packages a day. The privacy of our customers is essential to the core of our business. This privacy is now at risk, based on the charges by the Department of Justice related to the transportation of prescription medications.

    We want to be clear what’s at stake here: the government is suggesting that FedEx assume criminal responsibility for the legality of the contents of the millions of packages that we pick up and deliver every day. We are a transportation company – we are not law enforcement. We have no interest in violating the privacy of our customers. We continue to stand ready and willing to support and assist law enforcement. We cannot, however, do the job of law enforcement ourselves.

    FedEx Corporation Press Release
    17th July 2014
    http://news.van.fedex.com/fedex-DOJ-response
  4. AKA_freckles
    I read in a separate article that FedEx used to cooperate extensively with the feds 10 years ago.

    Even allowing packages with drugs to be wired, basically, so that they were delivered normally but upon opening the device would signal the feds waiting around the corner to make their bust. FedEx put a stop to it because drivers work alone and there were obvious concerns about the drivers being marked as snitches and the eventual retaliation.

    That's insane they would have even let the feds do that in the first place.

    I want to know why the USPS isn't mentioned at all.

    UPS just rolled over and paid up.

    I want to support FedEx but don't haves any ideas how to.
To make a comment simply sign up and become a member!