FRAUD ALERT: Scammers Diverting Drug Shipments from Distributors, Pharmacies

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Here is the full text of an email alert sent by the California State Board of Pharmacy:

"Pharmacies, hospitals, and distributors are being warned about scammers using sophisticated techniques to obtain account numbers and other sensitive information and unlawfully divert quantities of pharmaceutical goods in transit. In some cases, scammers pretended to represent the state’s board of pharmacy or employees for a particular distributor or pharmacy.

The callers requested and obtained each pharmacy’s DEA number and account purchasing information for their principal distributor. The scammers then called each distributor – pretending to be the pharmacy – and ordered between $100,000 and $300,000 worth of products. Common products ordered included a variety of HIV medications (Descovy, Triumeq, Odefsey) and Xarelto, Otezla, and Eliquis.

Once the products were delivered, the scammers called the pharmacy – pretending to be the distributor – and advised the pharmacy the order was made in error. The scammers then arranged for a courier to pick up the diverted product.

The Healthcare Distribution Alliance Pharmaceutical Cargo Security Coalition (HDAPCSC) has released a report about this problem: “Fraud Alert: Distributor/Customer Product Ordering Scheme,” Version 2 (Updated June 2022). The report discusses methods being used to divert drug shipments and tips for protecting distributors and pharmacies.

The California State Board of Pharmacy urges drug distributors and pharmacists to read the report and learn how to spot fraudulent activity and prevent drug diversion."

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Source: 

FRAUD ALERT: Scammers Diverting Drug Shipments from Distributors, Pharmacies (an email alert sent by the California State Board of Pharmacy on June 24, 2022)

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Our STAT Op-Ed: Drug Importation Can’t Coexist with U.S. Track-and-Trace Law - DrugChannels.net

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Read the full text of the Op-Ed:  Our STAT Op-Ed: Drug Importation Can’t Coexist with U.S. Track-and-Trace Law - DrugChannels.net

From the Op-Ed:

"As we see it, there is no legal or operational way of transforming a drug packaged for a foreign market into a drug that meets the U.S. requirements of our in-progress track-and-trace system. What’s more, there is no way to alter the law to enable importation without undermining the law’s purpose and value.  ... 

Importation laws undermine the country’s progress in building a modern technology infrastructure to track and trace prescription drugs. Making exceptions to the in-progress track-and-trace system would ignore the many instances of drug diversion and counterfeiting that led to the creation and passage of the law in 2013."

The Op-Ed covers the following areas:

• State drug importation laws undermine the process that keeps our supply chain safe
• Why the U.S. is building a track-and-trace system 
• How track-and-trace works 
• Importation undermines the track-and-trace system
• Importation enables counterfeits 
• Forgetting the lessons 

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California Designated Representative Training Courses (for wholesaler, 3PL, reverse distributor). Largest selection of Board-approved California Designated Representative online training courses. Earns a training affidavit accepted by the California State Board of Pharmacy.

For Designated Representative license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training affidavit):

• CA Designated Representative Wholesaler Training - Available around-the-clock 24 x 7
• CA Designated Representative 3PL Training
• CA Designated Representative Reverse Distributor Training - New!
• The Designated Representative Institute

     Florida:

• Florida Certified Designated Representative - CDR Laws and Rules Examination Prep Course

For HMDR Exemptee license applicants  -  Training programs, courses, classes, seminars:

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• The Exemptee Institute

California Man Pleads Guilty in Prescription Drug Diversion Scheme | OPA | Department of Justice

Read the full article: California Man Pleads Guilty in Prescription Drug Diversion Scheme | OPA | Department of Justice:

"According to court documents, from May 2010 through December 2012, Vin Nguyen, 45, and others conspired to distribute illegally-diverted prescription drugs while concealing the true, illicit sources of the drugs.  Nguyen purchased prescription drugs, including HIV medications, anti-psychotic medications and other brand name drugs, from various unlicensed and illegal sources in California and Florida.  Working with co-conspirators, Nguyen then sold the drugs to other drug diverters without the statutorily required pedigree documents stating the origin of the drugs.  Nguyen and his co-conspirators sold more than $6.5 million worth of diverted drugs. "

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Pharmacy Diversion Awareness Conferences by the DEA

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Updated June 4, 2024

The original link broke.

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DEA Meetings and Events

---  the original post follows below  ---

The California Board of Pharmacy, in a recent e-mail says,

"Prescription drug abuse is at an all-time high in this country. Drug diversion continues to be a principal cause of discipline for regulators of pharmacies, pharmacists and wholesalers. The federal Drug Enforcement Administration are conducting regional one-day conferences on these topics. The board will award six hours of continuing education credit to pharmacists and pharmacy technicians who attend a full session.

There will be meetings located in San Jose on August 18 and 19 and San Diego on August 16 and 17."

Follow this link to the DEA webpage for Pharmacy Diversion Awareness Conference dates, locations, general information, and registration

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For Designated Representative license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training affidavit):

• CA Designated Representative Wholesaler Training - Available around-the-clock 24 x 7
• CA Designated Representative 3PL Training
• CA Designated Representative Reverse Distributor Training  
• The Designated Representative Institute

     Florida:

• Florida Certified Designated Representative - CDR Laws and Rules Examination Prep Course

For HMDR Exemptee license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training completion certificate):

• CA Home Medical Device Retailer (HMDR) Exemptee Training Course
• The Exemptee Institute

Safe Doses Act - Penalties for Pharma Cargo Thefts - Statement by HDMA Pres. John Gray

Follow this link to read John Gray's statement on the passing of the Safe Doses Act . . .

HDMA - Press Releases - 10/09/12:

"President Obama signed into law the Strengthening and Focusing Enforcement to Deter Organization Stealing and Enhance Safety Act of 2011 (SAFE DOSES Act, H.R. 4223/S. 1002). The legislation is sponsored by Congressman Sensenbrenner (R-Wis.) in the House, as well as Senators Schumer (D-N.Y.) and Kyl (R-Ariz.)"

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• CA HMDR Exemptee Training - The Best Course Around (skillsplusinfo.blogspot.com)

Distributors - Avoid DEA License Suspension

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Updated October 29, 2025

Some of the links in the original post broke.

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DEA alleges Harvard Drug Group sold controlled substances improperly - by Crain's Detroit Business

- - -  original post follows below  - - -

Michigan Pharmaceutical Supplier’s DEA License Suspended - Harvard Drug Group, LLC distributed 13 million doses of Oxy from 2008-2010 is yet another warning shot to pharmaceutical distributors.

Adam Fein says "the DEA seems intent on holding drug wholesalers accountable for diversion of controlled substances by the wholesaler’s pharmacy customers." (The DEA Nabs Another Wholesaler)

Robert L. Corso, Special Agent in Charge of the Detroit Field Division, Drug Enforcement Administration (DEA), states in the DEA news release:

"Pharmaceutical companies have a responsibility to ensure that the drugs they sell don’t end up in the hands of drug traffickers or businesses that are conducting their business illegally. Harvard Drug Group, LLC, should have known, based on the large, frequent quantities, that their customers were diverting oxycodone into arenas that were not legitimate. Today’s action sends the message that the DEA is working hard to hold accountable those companies that are operating in a manner outside of federal law."

Be forewarned.

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California Designated Representative Training Courses (approved by the California State Board of Pharmacy) - for wholesalers, 3PL, reverse distributors

For Designated Representative license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training affidavit):

• CA Designated Representative Wholesaler Training - Available around-the-clock 24 x 7
• CA Designated Representative 3PL Training
• CA Designated Representative Reverse Distributor Training  
• The Designated Representative Institute

     Florida:

• Florida Certified Designated Representative - CDR Laws and Rules Examination Prep Course

For HMDR Exemptee license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training completion certificate):

• CA Home Medical Device Retailer (HMDR) Exemptee Training Course
• The Exemptee Institute

FDA Urges Companies To Prevent Cargo Thefts

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According to this blog post, the FDA wants companies to review their security practices to prevent "cargo theft" from warehouses and tractor trailers, FDA Wants Companies To Prevent Cargo Theft.

This should be of some interest to wholesalers handling a variety of FDA-regulated products such as prescription or over-the-counter medicines, medical devices, or infant formula.

Return Home:  The Designated Representative and Exemptee Blog

- - -

For Designated Representative license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training affidavit):

• CA Designated Representative Wholesaler Training - Available around-the-clock 24 x 7
• CA Designated Representative 3PL Training
• CA Designated Representative Reverse Distributor Training  
• The Designated Representative Institute

     Florida:

• Florida Certified Designated Representative - CDR Laws and Rules Examination Prep Course

For HMDR Exemptee license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training completion certificate):

• CA Home Medical Device Retailer (HMDR) Exemptee Training Course
• The Exemptee Institute

CA Man Sentenced For Prescription Drug Diversion

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Updated May 17, 2022

The original link broke.

You can still read about the same topic here:

California Man Sentenced For Prescription Drug Diversion - Pharmaceutical Processing World

---  the original post follows below  ---

Uh-oh. Don't get caught like this. Read this Department of Justice (DOJ) news release to see what I mean, California Man Sentenced For Prescription Drug Diversion. According to the release, the Californian man was "was sentenced to 52 months of incarceration to be followed by three years of supervised release for illegally distributing large quantities of Serostim, an HIV drug, which were illegally purchased from illegitimate sources and then illegally sold to wholesale distributors in various parts of the country, using falsified paperwork." Here's what this means to you, "The Prescription Drug Marketing Act (“PDMA”) requires wholesale distributors of prescription drugs to be licensed by the states in which they operate. Pursuant to the PDMA, the FDA enacted minimum state guidelines for state licensing of wholesale distributors of prescription drugs. The PDMA generally requires wholesale distributors of prescription drugs to provide to the recipient of the drugs a statement indicating each prior sale of the drug including the names of all parties to the transactions. This statement is generally referred to as the “Drug Pedigree.” The minimum state guidelines and the drug pedigree requirement are designed to eliminate potential risks to the public health by protecting the integrity of the drug distribution system." 

Return Home:  The Designated Representative and Exemptee Blog

- - -

For Designated Representative license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training affidavit):

• CA Designated Representative Wholesaler Training - Available around-the-clock 24 x 7
• CA Designated Representative 3PL Training
• CA Designated Representative Reverse Distributor Training  
• The Designated Representative Institute

     Florida:

• Florida Certified Designated Representative - CDR Laws and Rules Examination Prep Course

For HMDR Exemptee license applicants  -  Training programs, courses, classes, seminars:

     California (earn a training completion certificate):

• CA Home Medical Device Retailer (HMDR) Exemptee Training Course
• The Exemptee Institute