Online Pharmacy Defendants Plead Guilty

On Friday, Jared Robert Wheat, Stephen Douglas Smith, Tomasz Holda, Sergio Oliveira and their company, Hi-Tech Pharmaceuticals, Inc., pled guilty in the United States District Court for the Northern District of Georgia pled guilty to conspiring to import and distribute adulterated, mislabeled and unapproved drugs and to commit mail fraud and wire fraud, according to the website for the Office of the United States Attorney for the Northern District of Georgia.

The defendants were alleged to have set up an off-shore pharmaceutical manufacturing facility, a small four-room facility in Belize. At the facility, the defendants produced generic versions of popular drugs such as Xanax, Valium, Ambien, Vioxx, Zoloft, Viagra, and Cialis. The production is alleged to have not authorized by the Food and Drug Administration ("FDA") and in violation of FDA regulations as well as the patents for the drugs, and to have been in unsanitary conditions. The defendants then marketed and sold the drugs to individuals without prescriptions, primarily over the internet. The defendants are alleged to have realized millions from the scheme. The FDA Office of Criminal Investigations participated in the investigation of the case. 

Defendants Sentenced in $2 Million eBay Counterfeiting Scheme

    Zachary Hurley, Stephen Piwowar and Jonathan Portwood were sentenced to 51 months and 15 months of imprisonment, and 5 years probation respectively in the United States District Court for the Northern District of Georgia for conspiracy to traffic in counterfeit goods. According to the U.S. Attorney's Office for the Northern District of Georgia, the defendants sold tens of thousands of counterfeit NFL, NBA and other sports jerseys over the eBay internet auction service. Hurley allegedly established a contact to supply him with the counterfeit jerseys while stationed with the U.S. Army in South Korea, and recruited Portwood and Piwowar after he returned to the U.S. to sell imported counterfeit jerseys.

    The defendants were arrested as a result of an investigation by U.S. Immigration and Customs Enforcement agents. They grossed over $2.25 million from the scheme, and authorities seized 22,000 additional counterfeit jerseys with a retail value of over $2 million. Even following his arrest, Hurley continued to import and sell counterfeit golf clubs on eBay through an accomplice.