News Release
FOR IMMEDIATE RELEASE
October 13, 2010
Contact: SA Waldo Santiago
Public Information Officer
Number: (787) 277-4700

DEA Lead Investigation Results in Twenty Individuals
Indicted for Oxycodone Trafficking, Identity Theft and Health Care Fraud
Over 300 fraudulent prescriptions filed at 60 pharmacies in 27 municipalities. More than 20,000 tablets illegally diverted by the Defendants

DEA agent brings defendant for processing. DEA ASAC Pedro Janer interviewed by UNIVISION Puerto Rico. (L-R) HHS-OIG New York Region ASAC Anna Coschignano, Denis Cintron, Director of ASSMCA’s Drug and Narcotics Control Division, ASAC Janer and U.S. Secret Service RAC Pedro Gomez.
DEA agent brings defendant for processing.

DEA ASAC Pedro Janer interviewed by UNIVISION Puerto Rico. (L-R) HHS-OIG New York Region ASAC Anna Coschignano, Denis Cintron, Director of ASSMCA’s Drug and Narcotics Control Division, ASAC Janer and U.S. Secret Service RAC Pedro Gomez.

OCT 13 -- SAN JUAN, P.R. – On September 27, 2010, Javier F. Peña, Special Agent in Charge of the DEA Caribbean Division and Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico announced today a federal grand jury indicted twenty (20) individuals, in eighteen (18) different indictments, as a result of an investigation into illegally obtained prescription drugs lead by the Drug Enforcement Administration (DEA), with the collaboration of Health and Human Services, Office of Inspector General (HHS-OIG) and United States Secret Service (USSS).

DEA agents take defendant into custody
DEA agents take defendant into custody.

The investigation revealed that the defendants submitted false prescriptions to pharmacies throughout Puerto Rico and conspired to possess, possessed or attempted to possess, Oxycodone, a Schedule II Controlled Substance, commonly known as Percocet. In some instances, the Percocet tablets were acquired for distribution and financial gain. The pharmacies where the defendants obtained the Percocet are located in Guaynabo, Patillas, Arroyo, Salinas, Juana Díaz, Juncos, Carolina, Ponce, San German, Mayagüez, Corozal and Villalba.

The defendants filled the prescriptions using real names and medical license numbers of over 24 physicians, all of whom are victims in these cases. The defendants had access to the physicians’ personal information, as well as their Federal and State license information. The defendants stole the identities of individuals whose names and/or identifications were then used in the purchase of the Percocet tablets.

 “Today’s indictments exemplify the department’s commitment to aggressively prosecute all drug traffickers who endanger our communities with the sale of the controlled substances, regardless of the type of narcotic,” said United States Attorney Rosa Emilia Rodríguez Vélez.

“Prescription drug abuse is a serious problem. DEA is attacking this problem in all fronts:  through education, prevention and enforcement. As part of our prevention and education efforts on September 25 we collected ½ a ton of prescription drugs. Today, we attack this problem through enforcement,” stated Javier F. Peña, Special Agent in Charge of the Drug Enforcement Administration Caribbean Division. “These individuals diverted hundreds of Oxycodone tablets into the illegal drug market. They committed other serious crimes such as identity theft and health care fraud. But our joint efforts with our federal and local partners paid off. Today they’ll face the full force of the law”.

(L-R) Health & Human Services OIG, U.S. Secret Service and DEA agents execute arrest warrants at one of the public housing projects.
(L-R) Health & Human Services OIG, U.S. Secret Service and DEA agents execute arrest warrants at one of the public housing projects.

“ HHS OIG will continue to work cooperatively with its law enforcement partners to investigate and apprehend those individuals who commit health care fraud by illegally obtaining prescription drugs that affect federally funded health care programs" said Special Agent In Charge, Thomas F. O’Donnell, from the U.S. Department of Health and Human Services Office of Inspector General , New York Region.  “We commend the United States Attorney’s Office for the District of Puerto Rico for their aggressive handling of these cases.”

“The U.S. Secret Service is known for its dual mission of protecting National leaders and conducting criminal investigations to safeguard our Nation’s financial systems. Identity theft is a serious crime that threatens our financial systems,” stated Pedro Gomez, Resident Agent in Charge of the U.S. Secret Service in Puerto Rico. “This investigation is an example of how we are collaborating with other federal and local agencies by bringing to justice individuals that engage in identity theft to facilitate other crimes. Our message is clear: the U.S. Secret Service will have zero-tolerance towards identity theft.”

Some of the investigation highlights are as follows:

  • The defendants where some of the most active prescription drug traffickers in northern Puerto Rico and distributed the Oxycodone tablets in various Public Housing Projects in the San Juan metropolitan area.
  • The investigation revealed that that the defendants acquired over 20,000 Oxycodone tablets from 2008 to 2010. Oxycodone is a Schedule II Controlled Substance
  • The defendants sold each Oxycodone tablet for $6-$10 per tablet, depending on the current supply. Between $120,000 and $200,000 is the estimate of their illegal profits.
  • The investigators recovered almost 300 fraudulent prescriptions, from over 60 pharmacies, located at 27 different municipalities in Puerto Rico
  • The investigation revealed that the defendants’ criminal activities victimized Doctors, Pharmacies and Health Insurers. They kept over 24 medical physicians, who are not involved in the illegal diversion of Controlled Substances, living in fear of harm, since they had access to their personal information, as well as their Federal and State license information.
  • Over 24 medical physicians, specialties ranging from General Practice to Surgeons, have been affected by identity theft and a health insurance provider was affected by theft and fraud.
  • All physicians and some of the pharmacies have been cleared of any illegal activities or involvement with the organization. The investigation continues.
  • Prescription drug abuse is an increasing problem in Puerto Rico. On September 25, during the National Take Back Day approximately 1,000 pounds (1/2 ton) of pharmaceutical drugs where collected in Puerto Rico and the U.S. Virgin Islands.
  • This investigation, not only impeded the diversion of prescription drugs, but also protected the public and practitioners from fraudulent use of their identities; and protected the health care industry from the fraudulent use of their insurance products to facilitate criminal activities.
  • DEA is committed to protecting the integrity of the pharmaceutical drug distribution system.

The DEA investigation, named Operation “La Redonda” (nickname given by the traffickers to the Oxycondone tablets) was conducted by the DEA Caribbean Division’s San Juan Tactical Diversion Squad, jointly with the USSS and the HHS-OIG.

The Puerto Rico Mental Health and Anti Addiction Services Administration and the Puerto Rico Police Department provided significant assistance to the investigation.

Assistant U.S. Attorney Elba Gorbea is prosecuting these cases.  If convicted, the defendants charged could face penalties ranging from more than one year, up to twenty (20) years in prison.

An indictment contains only charges and is not evidence of guilt. A defendant is presumed to be innocent until and unless proven guilty. The investigation continues.

>> Chart of Individuals in Indicted

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