Feds Indict Fedex on Drug Conspiracy Charges

The U.S. Attorney's office in San Francisco has indicted Fedex on drug conspiracy charges. Here is the Indictment.

The charges relate to its shipping of prescription drugs on behalf of internet pharmacies. The Indictment claims Fedex has been doing this since 1998 and was told to stop in 2004. The pharmacies are the Chhabra-Smoley organization and Superior Drugs.

The penalties: [More...]

If convicted, the defendants face a maximum sentence of 5 years of probation, and a fine of between $1 and 2.5 million, or twice the gross gain derived from the offense, alleged in the indictment to be at least $820 million. The defendants are also liable for restitution to victims of the crime, as well as forfeiture of the gross proceeds of the offense and any facilitating property.

Fedex has sent out this response.

We want to be clear what’s at stake here: the government is suggesting that FedEx assume criminal responsibility for the legality of the contents of the millions of packages that we pick up and deliver every day. We are a transportation company – we are not law enforcement. We have no interest in violating the privacy of our customers. We continue to stand ready and willing to support and assist law enforcement. We cannot, however, do the job of law enforcement ourselves.

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  • Display: Sort:
    Who are the (5.00 / 1) (#1)
    by ZtoA on Mon Jul 21, 2014 at 11:19:01 AM EST
    victims of the supposed crime?

    Big Pharma profits... (5.00 / 6) (#2)
    by kdog on Mon Jul 21, 2014 at 12:29:36 PM EST
    have you no sympathy for the victim? Me neither;)

    Tax dollars busting Moonshiners (5.00 / 4) (#4)
    by Militarytracy on Mon Jul 21, 2014 at 01:00:29 PM EST
    In Alabama, sicking law dogs on transportation companies.  I am fed up, completely fed up.  We have real problems and this is what we are doing with our time and our dollars?

    Nobody can investigate Wall Street?

    Wow I am unbelievably sick of this bull$hit!


    But the stock market is booming! (5.00 / 2) (#5)
    by Dadler on Mon Jul 21, 2014 at 01:12:07 PM EST
    Are you saying that it's just another corrupt bubble about to burst and ruin more lives? You cynic.

    Seriously, I'm as p*ssed as you, but I'll be lucky enough if my lousy internet connection down here near Apalachicola FL lasts long enough to actually post this comment.


    I don't even know where that is (5.00 / 1) (#6)
    by Militarytracy on Mon Jul 21, 2014 at 01:24:45 PM EST
    Gonna have to look it up :)

    Who knows where Enterprise AL is either?


    You are a buck fifty away (5.00 / 1) (#7)
    by Militarytracy on Mon Jul 21, 2014 at 01:30:35 PM EST
    Pretty close.  Last week was percussion camp, this week is band camp......cue jokes :)

    Josh is at band camp from 7:30 am to 6:00 pm with a two hour lunch break, my week is owned.

    I hope you and family are having a great time!


    Aplalachicola is famous for oysters... (none / 0) (#22)
    by fishcamp on Mon Jul 21, 2014 at 07:32:22 PM EST
    but I wouldn't eat any during the summer months.  We only eat Florida oysters during the months with the letter r in the month.  But most people know that.

    Months with "R" (none / 0) (#29)
    by sj on Tue Jul 22, 2014 at 04:59:28 PM EST
    Heard that for the first time when I lived in Baltimore.  It was a real bummer, too, when I had a hankering in May.

    Wall St has been investigated (none / 0) (#8)
    by Green26 on Mon Jul 21, 2014 at 02:00:50 PM EST
    to ad nausem. Some people just can't accept that there was likely little or no activity that amounted to criminal activity in the bubble and financial crash. And, I agree that, generally, the US shouldn't try to use providers to enforce its laws. If the government wants Fed Ex from picking up packages from some senders, it should get a court order. Carriers of packages should not be required to look inside packages, or determine what is in packages.

    Exactly the problem... (5.00 / 6) (#9)
    by kdog on Mon Jul 21, 2014 at 02:38:04 PM EST
    Wall St. bought several sessions of congress and several presidents to legalize their brand of thievery.  Just as big pharma have bought and paid for laws that have put FedEx in the crosshairs.

    FedEx coulda saved alotta money on lawyers if they had just upped their bribes to lawmakers...they wouldn't be in this mess.


    No, they haven't been (5.00 / 6) (#15)
    by Dadler on Mon Jul 21, 2014 at 05:43:51 PM EST
    Not in the least. I guess I will say I will agree to disagree, as vehemently as a person can. IMO, to suggest Wall Street has been treated with anything but corrupt kid gloves is simply ridiculous bullsh*t. Big money OWNS this country, top to bottom, and that is an indisputable fact. You want to dispute it, you want to claim that America is controlled equally by rich and poor, you go ahead and try. Please, have at it. Peace to you, my fellow free American.

    Total Bull (none / 0) (#11)
    by Militarytracy on Mon Jul 21, 2014 at 03:00:20 PM EST
    Do you read Bill Black ever.  He was someone Conservatives adored once upon a time, served President Reagan, straightened out the S&L scandal.  We have 1/10 th of regulators needed at this time to even begin to adequately oversee what Wall Street is up to.

    This is just great. (5.00 / 4) (#12)
    by NYShooter on Mon Jul 21, 2014 at 04:59:55 PM EST
     Wall Street, and, its associated banks and corporations have committed criminal acts too numerous to count. The involve U.S. attorneys have stated this again and again. When asked why they didn't pursue criminal indictments against the executives who engaged in those crimes their answer was always the same. Shutting down these criminal enterprises, and, sending their managers to jail would have a "chilling" effect on the entire banking system, so, hitting them with massive, multibillion dollar fines was their compromise solution.

    Now, don't you just love it? The government states that the involved banks committed crimes, says that charging them with crimes would hurt the innocent bankers and the whole banking industry, fines them instead, lets them pay the fines with shareholder's money, and, lets the criminal bankers off scot free.

    So, to the Right Wing Noise Machine, and, Green26, if a criminal commits a crime, but, isn't punished for it, no crime was committed.

    Yup, we've come full circle: Wrong is right, up is down, and, if you don't like it here's some advice for you, as Tom Friedman said, "suck on this!."


    If Wall St had committed lots of crimes (none / 0) (#19)
    by Green26 on Mon Jul 21, 2014 at 05:55:45 PM EST
    there would be lots of prosecutions. Investigators, prosecutors, Congress and regulators have been all over Wall St since the '08 financial crisis. There are some tough and smart prosecutors who looked at Wall St over the financial crisis, and they apparently didn't find much.

    "Didn't find much?" Holy moly. (5.00 / 4) (#23)
    by Anne on Mon Jul 21, 2014 at 09:21:29 PM EST
    It's hard to know how to respond to such a shockingly ignorant statement, but let's start with some basics.

    Frontline did more than a few episodes on the financial crisis and Wall Street's role.  Here's a link to Money, Power and Wall Street.

    Frontline again: The Untouchables.  Watch the program and check out the long list of articles on the page that go into great detail on the fraud and criminal activity that has gone largely unprosecuted.  Many of these banks and firms have paid their way out of trouble, without even having to admit to wrongdoing.

    Or how about Matt Taibbi at Rolling Stone: Gangster Banksters: Too Big to Jail.  I'd quote from it, but there's so much, it's impossible to pull out a small sample.

    A simple Google search for "failure to prosecute banks" or "failure to prosecute Wall Street" will bring up a ton of links.  

    I don't know how you could be so unaware of all of this, but I have to tell you that with so much evidence and information in direct conflict with your assertions, it's hard to take anything you say seriously.


    Then where are all the indictments (1.00 / 1) (#25)
    by Green26 on Tue Jul 22, 2014 at 12:35:04 AM EST
    and prosecutions? We're talking about criminal activities--not stories written by some reporter or group of reporters without a clue.

    Sorry, but I think it's pretty funny that your sources for financial matters and Wall St are Frontline and Rolling Stone.

    I know you weren't the one talking about Wall St buying off Congress, but are those posters also thinking that Wall St bought off some of the toughest, smartest and most aggressive prosecutors in the US?

    Feel free to pick out a specific matter and explain why there should have been a criminal prosecution, and then I'll see if I can explain why it shouldn't have been or wasn't.


    So...you read my comment, but instead of (5.00 / 2) (#26)
    by Anne on Tue Jul 22, 2014 at 06:58:18 AM EST
    taking advantage of the links provided, what happened?  Your eyes slammed shut and you were unable to read or watch them?  Sorry to tell you that what I provided is loaded with the specific examples you've demanded - and that's all information that's been out there for a long time, leaving you with no excuse for not knowing it.  Well, unless you didn't want to know it.

    You have provided exactly ZERO support for your assertions, so I would say that the burden is on you to provide specific examples that prove your point, not on me.  And we both know - we all know - that's not gonna happen, is it?

    None of this has anything to do with the topic of the thread, so to pull it back on-topic, I think the point is that it's hard to make sense of a government that couldn't or wouldn't do its job with respect to the banking and securities industry, had - and still has - a nice little revolving-door thing going with people rotating from Congress to financial services firms to lobbying shops to make sure nothing got - or gets - in the way of the cash gushing into their collective pockets - but apparently has the time and resources to take FedEx to court for providing the services it's in business to provide, because some of the people using it are cutting Big Pharma out of the cash flow.

    You don't see it that way, which is fine.  As long as you understand that we now know that it's hard to see much of anything when your eyes are closed.


    Any intellectually honest person (none / 0) (#27)
    by jondee on Tue Jul 22, 2014 at 10:49:45 AM EST
    with half a brain of course would be aware of how many times the great fear had been intimated that any serious investigation into fraud on Wall St might precipitate another financial crisis.

    Also it's difficult to prove fraud on that level when you have an investigatory team of twenty, and Goldman Sachs has unlimited funds and two hundred stop-at-nothing, Machiavellian shylocks at their disposal.


    Except that back in the 70's (5.00 / 4) (#30)
    by NYShooter on Tue Jul 22, 2014 at 09:11:08 PM EST
    during the "Savings & Loan" scandal, with even fewer federal agents, they somehow managed to investigate, indict, prosecute, and, win convictions for several thousand Bank Executive who had fleeced their banks (and, their  shareholders) out of billions of dollars. The great majority ended up spending many, many years in Federal Prisons.

    Troubled banks were seized by the Feds ("Nationalized") Those that could be rehabilitated, were run by federal experts until they were made solvent again, and, then merged with healthy banks, or, sold to well financed syndicates.

    The idea that today's "TBTF" banks can't be taken over by our federal banking experts, split up into manageable divisions, and merged back into the system is just a Wall St. myth, endorsed, and, promoted by our craven, sold-out politicians.

    I'm not the smartest guy to have ever made a living from Wall St, but, I'm smart enough to know our government has some of brightest, and, most capable bank experts, examiners, & managers  in the world. They are up-to-date on the latest technology, and, could make the current crop of sleazy Banksters squeal like stuck pigs.

    Finally, some of my friends who go way back with me, and, are still plying their trade on The Street, tell me that those guys are really pi$$ed off at not being given the chance to lock horns with those crooks. These are career cats, not motivated by the money, and, corny as it may sound, believe there still is a place for honor and honesty in our system.

    What a shame they were never given the chance.


    Please let some of the old timers know (none / 0) (#36)
    by Militarytracy on Wed Jul 23, 2014 at 12:58:46 PM EST
    There are individuals out there who will pay for their book!  

    I, sincerely, don't mean (none / 0) (#21)
    by NYShooter on Mon Jul 21, 2014 at 06:58:37 PM EST
    to insult you, but, do you have a comprehension problem? Did you really read my response?

    Well. O.K. Stay tuned, I don't have time right now, but, when I get back you'll get all the "proof" anyone would need; anyone, that is, with a modicum of intelligence, and, and honest, open minded desire to engage in an adult conversation.

    Fair enough? (and, I won't even ask you for an apology)  


    scratch that, (5.00 / 2) (#31)
    by NYShooter on Tue Jul 22, 2014 at 09:12:14 PM EST
    Anne is right; why waste my time?

    Bill Black has become a nut (none / 0) (#18)
    by Green26 on Mon Jul 21, 2014 at 05:50:09 PM EST
    Not many people who understand the financial industry pay attention to him. He make broad unsupported statements and hopes it will lead to more talk shows and income. Doesn't surprise me that you would get your financial industry information/views from him.

    99% of the people (5.00 / 1) (#28)
    by jondee on Tue Jul 22, 2014 at 11:04:14 AM EST
    who "understand the financial industry" on that level are embedded suck-ups who, 99% of the time, reflexively minimize the need for in-depth investigations and increased regulation -- as if the entire financial crisis had been the result of some sort of Act of God, or the result of sunspot activity.

    Because unimpeded Free Markets are like the mysterious workings of Divine Providence.  


    A nut that is a University professor (none / 0) (#20)
    by Militarytracy on Mon Jul 21, 2014 at 06:49:06 PM EST
    Whereas you are clothed only in your repeated statement that, "You're not a nut!"  :)

    Black is a prof at (1.00 / 1) (#24)
    by Green26 on Tue Jul 22, 2014 at 12:25:53 AM EST
    a crappy school. Univ of Missouri at Kansas City. The law school is ranked 104th by US News.

    So far, nothing but ad hominem (none / 0) (#33)
    by Mr Natural on Wed Jul 23, 2014 at 07:37:37 AM EST
    Is that what you were taught at your law school?

    Nonsense. (none / 0) (#13)
    by Angel on Mon Jul 21, 2014 at 05:28:12 PM EST
    I am soooooo sick of (5.00 / 3) (#3)
    by Militarytracy on Mon Jul 21, 2014 at 12:54:44 PM EST
    My tax dollars going towards the protection of big pharma's profits. With each passing day this country becomes more and more like a police state in tooooo many ways.

    So, FedEx is now like the pharmacy counter (5.00 / 4) (#10)
    by Anne on Mon Jul 21, 2014 at 02:43:57 PM EST
    at Walgreen's?

    Oh, no - wait: FedEx is a delivery service, not a pharmacy.  

    Hey, here's a thought: maybe if Americans could get their prescriptions as inexpensively as they do in other countries, people wouldn't have to resort to online suppliers.  

    Every day I am more convinced there is something seriously wrong with our government.

    If the point of origin... (5.00 / 1) (#32)
    by unitron on Wed Jul 23, 2014 at 12:23:07 AM EST
    ...of these packages is outside the US, why didn't customs intercept these illegal shipments?

    If inside the US, why didn't the DEA bust them before they could hand off the boxes to FedEx?

    The downside of corporate personhood... (5.00 / 1) (#34)
    by Mr Natural on Wed Jul 23, 2014 at 07:48:47 AM EST
    I can see it now.  Concertina wire topped prison walls surrounding Fedex package routing facilities.  B.O.P. thugs guarding Fedex airline pilots and delivery truck drivers.  The Board of Directors meeting in manacles.  

    Maybe the post office is next (none / 0) (#35)
    by Mikado Cat on Wed Jul 23, 2014 at 08:49:22 AM EST
    That would be where the bulk of cheap drugs are shipped is my guess.

    Anytime I bought drugs online... (5.00 / 1) (#37)
    by kdog on Wed Jul 23, 2014 at 01:08:12 PM EST
    USPS was the carrier.  Sh*t even the whippets I bought on Amazon got delivered via USPS.

    All received on time and untampered...the USPS is the best.


    I thought a whippet was a dog? (5.00 / 1) (#38)
    by Militarytracy on Wed Jul 23, 2014 at 06:27:29 PM EST
    Spelling Error... (none / 0) (#39)
    by kdog on Thu Jul 24, 2014 at 08:26:37 AM EST
    Amazon sells whippits and whippit accessories, not whippets.