Canadian Drug Company and Execs Face Criminal Charges, Forfeiture of Over $78 Million for Smuggling Into U.S.
A Canadian drug distributor and several of its high-ranking employees face years in prison and at least $78 million in forfeited proceeds from a scheme to smuggle unapproved drugs in to the U.S., according to an indictment unsealed on Aug. 7 by the Montana U.S. District Court. CanadaDrugs.com and its CEO Kristjan Thorkelson, as well as several affiliated companies and their executives and sales managers, are being charged with conspiracy, smuggling and money laundering, with potential prison sentences ranging up to 20 years.
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The indictment says Canadadrugs.com sold mostly drugs that were unapproved by the Food and Drug Administration, including due to unauthorized labeling, and unlisted manufacturers. To escape scrutiny, the company allegedly valued its imported drug shipments at below $2,000 to avoid having to make formal entry, despite the shipments having a real value well above the limit for informal entries. CanadaDrugs.com and its affiliates continued to undervalue their shipments despite warnings from their customs broker that they may have been running afoul of customs regulations. The company came under FDA scrutiny after shipments of a counterfeit cancer drug from Denmark were found to have been distributed in the U.S. by CanadaDrugs.com.
Email ITTNews@warren-news.com for a copy of the indictment.