FRAUD ALERT: Scammers Diverting Drug Shipments from Distributors, Pharmacies

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      Wholesalers | 3PL | Reverse Distributors

Updated August 14, 2026

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Drug Supply Chain Integrity - FDA:

https://www.fda.gov/drugs/drug-safety-and-availability/drug-supply-chain-integrity

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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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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

Suspicious Phone Calls Continue - Warning About Scam Calls

• Board-approved California Designated Representative online training programs for wholesalers, 3PL, reverse distributors. Earns a Board-recognized training affidavit.

Updated March 14, 2026

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Alert: Beware of Scam Letters and/or Phone Calls (PDF): 
https://www.pharmacy.ca.gov/licensees/letter_phone_scam.pdf

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Updated January 14, 2020

The Board sent out yet another follow-up email with this updated information:

"What can you do to protect yourself?

Licensee security is an important matter. How can you be sure anyone who contacts you on behalf of the Board of Pharmacy or any government agency is legitimate? Here are some important tips from the board and DCA:

• A board inspector will never call to ask you to pay a fine to the caller.
• If you have doubts or any questions about a board inspector’s identity, contact the California State Board of Pharmacy at (916) 518-3100.
• If someone claims to be a board inspector, ask to see the inspector’s badge and business card issued by the Board of Pharmacy.
• Contact the DCA at (800) 952-5210 to find out if an official investigation is being conducted.
• If the caller claims to represent the DEA or the FBI, report the call to the DEA’s Extortion Scam reporting program or the FBI’s Internet Crime Complaint Center.
• If the caller’s phone number appears to be a Board of Pharmacy or DCA telephone number, report the scam using the Federal Communications Commission’s consumer complaint form. "

You can also view the full contents of the scam phone calls communication.

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Warning about Scam Calls - An alert from the California State Board of Pharmacy

According to the Board's alert (12/9/2019):

"Licensees have alerted the Board of Pharmacy about a phone caller who identifies himself as Peter Williams or some other name. Sometimes the caller claims to be a board inspector; other times, he told licensees he was a DEA agent. In each case, he claimed to be calling about an investigation and said the licensee would face discipline unless the licensee paid a “fine.”

These calls were part of a scam – attempts to extort money from licensees.

How can you be sure you are speaking to a Board of Pharmacy inspector? Here are some important tips to remember:

• A board inspector will visit your work place, not your home. Ask to see the inspector’s badge and business card issued by the Board of Pharmacy.
• An inspector will never contact you by phone to request any form of payment or ask you to pay a fine to the inspector.
• If you have doubt or any questions about an inspector’s identity, contact the Board of Pharmacy at (916) 518-3100."

This latest Board alert follows one issued in summer 2019:  Suspicious Phone Calls to Licensees - An alert from the California State Board of Pharmacy

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• Board-approved California Designated Representative online training programs for wholesalers, 3PL, reverse distributors. Earns a Board-recognized training affidavit.

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

Suspicious Phone Calls To Board Licensees

• California Designated Representative Training Programs. Largest selection of Board-approved Designated Representative online courses. 3 distinct classes for: wholesalers; 3PL; reverse distributors. Earns a training affidavit accepted by the Board.

Updated March 14, 2026

You might also be interested in: 

Alert: Beware of Scam Letters and/or Phone Calls (PDF): 
https://www.pharmacy.ca.gov/licensees/letter_phone_scam.pdf

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IMPORTANT: Suspicious Phone Calls to Licensees - An alert from the California State Board of Pharmacy

The Board emailed this alert:

"The California State Board of Pharmacy has learned that several licensees recently have received phone calls from scam artists claiming to be board inspectors or DEA agents calling about investigation matters.

At least one caller impersonating a board inspector gave a fake name, “Peter Williams.” It is unclear what kind of information the callers are seeking.

If you have questions or doubts about a caller claiming to work for the Board of Pharmacy, please contact the board at (916) 518-3100. Remember that board inspectors will NEVER request any form of payment by telephone."

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California Designated Representative Training Programs. Largest selection of Board-approved Designated Representative online courses. 3 distinct classes for: wholesalers; 3PL; reverse distributors. Earns a training affidavit accepted by the Board.

- - - 

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

Government Money Recovered From Medicaid Fraud Tripled

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Government triples money recovered from Medicaid scams - ABC News:

The Department of Health and Human Services show "the federal government has more than tripled the amount of money it has recovered through efforts to stop Medicaid fraud in the past six years."

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

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Phantom Pharmacy Scams Exploding

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Updated February 7, 2026

The original link broke.

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PHANTOM BILLING, FAKE PRESCRIPTIONS, AND THE HIGH COST OF MEDICINE

Health Care Fraud and What to Do about It:

https://library.oapen.org/bitstream/handle/20.500.12657/62116/9780801460807.pdf

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Federal officials are watching as "a new fraud is spreading through the health care system. Criminal enterprises posing as pharmacies are billing Medicare, Medicaid and private insurers for fake prescriptions and bilking health care out of millions of dollars," reports this CNN Money article, Phantom pharmacy - A growing health care fraud.

You're probably reading this because you have an interest in CA or FL. The article also says, "scammers typically target Florida and California because they have large Medicare and Medicaid populations."

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Florida Cracks Down On Miami DME Fraud

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Updated May 4, 2021

The original link broke.

You can still read about the topic here:

IN BRIEF: OXYGEN FRAUD, APRIA'S STRATEGY - HME News.com

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The Miami Herald reports, Florida probes Miami-area medical-equipment kickbacks - Medicaid investigators are targeting fraud in Miami-Dade County, zeroing in on questionable billing for medical equipment. They report investigations of providers suspected of bilking the state healthcare program for low-income people by billing for oxygen concentrators that are not medically needed. Investigators also visited more than 120 Medicaid patients, some of whom may have received kickbacks from medical equipment suppliers for ordering their products. Of note, investigators indicate that unnecessary billing for oxygen concentrators has been a particular problem over the past five years. According to Holly Benson, secretary for the Florida Agency for Health Care Administration, said fraudulent billing for oxygen concentrators is the latest scam ailing Medicaid, which spent $90 million on medical equipment in fiscal 2007-08. About 25 percent of that spending, funded by state and federal taxes, was in Miami-Dade. In summary, it's especially important to have things in order if you're near Miami and billing for oxygen concentrators. 

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