Two Men Indicted on Federal Charges for $17 Million Drug Scam

The two operators of a drug supply company in Great Neck, New York, were arrested on federal charges on Wednesday, April 30th, for their roles in a multimillion dollar medical device and drug scam.

William Scully, 45, and Rodi Lameh, 40, were charged for selling more than $17 million worth of misbranded or counterfeit medical devices and drugs, including fake cancer drugs and birth control.

Both men pleaded not guilty to the federal charges stemming from the 73-count indictment, and released on a $500,000 bond each. Federal charges included multiple counts of conspiracy, mail fraud, wire fraud, distribution of misbranded and counterfeit prescription drugs, trafficking in counterfeit goods, and smuggling.

“[In]stead 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 medications to an unsuspecting clinic,” Eastern District U.S. Attorney Loretta Lynch said in a statement. “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.”

Defense attorneys stated that their clients had acted legally, and their federal charges and subsequent drug scam arrests were a surprise, as both men acted in good faith and had been trying to resolve complaints against them with the FDA for at least two years.

“Our clients do not believe they were selling anything improperly. They certainly did not think they were selling anything ineffective,” said Peter Tomao, Scully’s attorney. “They believe that every drug that they were selling was in compliance with all regulations.”

Defense attorneys added that their clients had shut down their business over a year ago when they learned about an investigation and potential federal charges.

Most of the federal charges involved misbranded drugs, which are drugs manufactured overseas, beyond the reach of FDA regulations, then imported into the US making claims similar to generic versions of popular drugs. However, these drugs have not been approved for use or sale in the US. Among the misbranded drugs were versions of FDA-approved anti-cancer drugs Avastin, Aloxi, Aredia and Rituxan; the much-maligned IUD birth control device, Mirena; and Remicade, which treats Crohn’s Disease.

One count of trafficking involved the sale of a “drug” that had no known medically active ingredients.

The Strom Law Firm Can Help Defend Federal Charges

The law broadly defines wire fraud as devising or intending to devise a scheme to defraud others of money or property under false or fraudulent pretenses, representations or promises by means of electronic communications, or “wires.” Because they typically involve interstate matters, most wire fraud cases are considered federal crimes with convictions carrying heavy fines, prison sentences of up to 20 years, or both.

Our federal criminal defense lawyers handle cases involving:

• Fraudulent insurance claims
• Bond issuances and investment schemes
• Falsifying loan applications
• Check fraud schemes
• Bribes or kickbacks
• False advertising or misrepresentation in sales transactions
• making a false statement to a loan officer or bank official
• deceiving a bank
• falsifying loan documents
• check fraud
• forging check signatures
• ATM fraud
• Embezzlement
• And other federal charges.

If you, your loved one, or your corporation has been contacted by a law enforcement officer about federal charges, you should contact the Strom Law Firm, LLC immediately. The Strom Law Firm offers free, confidential consultations so you can discuss the facts of your case with impunity. Contact us today.803.252.4800