Tuesday, October 20, 2020

Former senior pharmaceutical executive pleads guilty for conspiracy to fix drug prices

-

A former senior executive pleaded guilty today for his role in a conspiracy to fix prices, rig bids, and allocate customers for generic drugs, the Department of Justice announced.

According to court documents, from at least March 2013 until at least June 2015, Hector Armando Kellum, a former senior executive at a generic pharmaceutical company based in New Jersey, conspired to fix prices, rig bids, and allocate customers for generic drugs. The conspiracy affected products including, but not limited to, clobetasol and nystatin triamcinolone cream.

Kellum’s co-conspirators included a generic pharmaceutical company headquartered in New York and various individuals, including Ara Aprahamian, who was indicted in Philadelphia on Feb. 4, 2020.  Kellum has agreed to cooperate with the Antitrust Division’s ongoing investigation into criminal antitrust violations in the generic drug industry.

“With today’s guilty plea, the Antitrust Division continues its prosecution of high-ranking executives who conspired to cheat America’s most vulnerable elderly consumers by raising prices for vital drugs,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Competition in our healthcare system is a critical focus for the Antitrust Division, and rooting out collusion by executives is a key priority in keeping our markets free.”

- Advertisement -

“Today’s guilty plea by the former pharmaceutical senior executive is yet another example of the dedication and determination exhibited by the legal and investigative teams,” said Special Agent in Charge Scott Pierce, U.S. Postal Service Office of Inspector General. “Along with our partners at the Department of Justice and the Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General will continue to aggressively investigate those individuals responsible for unlawful behavior within the generic drug industry.”

“Kellum’s plea shows he lost sight of the basic principle that medicine is intended to heal sick people, not line an individual’s pockets by colluding to rig bids and manipulate drug prices,” said Timothy R. Slater, Assistant Director in Charge of the FBI Washington Field Office. “The FBI and our partners will continue to fight for the American public to have access to a competitive marketplace for pharmaceuticals. We will not stand by while large corporations and business executives in power try to skirt the rules at the expense of unsuspecting citizens.”

Kellum is the fourth executive to be charged in this investigation, and the third to plead guilty. To date, two companies have also been charged.  The corporate charges were resolved by deferred prosecution agreement.

A violation of the charged offense carries a statutory maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

- Advertisement -

Original article on justice.gov

MUST READ

Goldman to pay over $2 billion in DOJ’s 1MDB Probe

Goldman Sachs Group Inc. has reached a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion for the bank’s...

Ex-managers of Security firm pleads guilty in Santa Clara County concealed gun permit bribery scandal

Two former managers of a Silicon Valley international security firm pleaded guilty Monday to charges related to a bribery scheme to obtain concealed firearms...

Ohio former House Speaker Larry Householder to stand for reelection amid bribery charges

Republican Rep. Larry Householder’s name will be on the ballot Election Day as the disgraced Ohio lawmaker intends to serve his district for another...

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...
Advertisement
Advertisement

Latest News

This Week

Police raids Czech Football Association, arrest vice-president in corruption probe

Czech police have detained 20 people including deputy Czech Football Association head Roman Berbr over alleged corruption and match-fixing following a nationwide raid, news...

Romania money laundering prevention agency chief resigns over fraudulent diplomas

Laurenţiu Baranga resigned from his job as head of the Office for Money Laundering Prevention as prosecutors opened an investigation concerning his diplomas. He...

Spain extradites former bank CEO sentenced in Iran for corruption

Spain has extradited a fugitive former Iranian executive implicated in a large financial corruption case, in what Iran’s judiciary says is the first such...

Billionaire Robert Smith admits to evading taxes for 15 years

Billionaire Robert Smith has been hailed as a brilliant investor who built Vista Equity Partners into a private equity powerhouse and a generous philanthropist...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks