healthcare fraud pharmaceutical The owner and head pharmacist of New England Compounding Center was found guilty of racketeering and fraud and sentenced to nine years in prison. In 2012, 753 patients in 20 states were diagnosed with a fungal infection after being injected with contaminated medical steroids manufactured by NECC. Sixty-four patients in nine states died in what may be the worst pharmaceutical disaster in U.S. history. Barry Cadden was found responsible for using expired active ingredients as well as shortcuts in production, resulting in a nationwide fungal meningitis outbreak according to the U.S. Centers for Disease Control and Prevention. Cadden was found to have repeatedly taken steps to hide his criminal activity. He was acquitted of second-degree murder charges.

The Department of Justice, U.S. Attorney’s Office, District of Massachusetts, June 26, 2017, press release Owner of New England Compounding Center Sentenced states:

Specifically, Cadden directed and authorized the shipping of contaminated MPA to NECC customers nationwide. In addition, he authorized the shipping of drugs before test results confirming their sterility were returned, never notified customers of nonsterile results, and compounded drugs with expired ingredients. Furthermore, certain batches of drugs were manufactured, in part, by an unlicensed pharmacy technician at NECC. Cadden also repeatedly took steps to shield NECC’s operations from regulatory oversight by the FDA by claiming to be a pharmacy dispensing drugs pursuant to valid, patient-specific prescriptions. In fact, NECC routinely dispensed drugs in bulk without valid prescriptions.

Fraud may be committed when a manufacturer intentionally misrepresents their product to the public. In litigation, fraud expert witnesses scrutinize whether deceptive marketing has taken place. These experts are well informed on industry standards and regulations. They give unbiased and sound testimony in cases alleging complex health care fraud committed by corporate and individual defendants, including, but not limited to, independent clinical laboratories, pharmaceutical manufacturers, medical device manufacturers, hospitals, ambulance service providers, doctors, pharmacists, and other medical providers.