Thursday, June 15, 2017
Prosecutors Push for Long Cadden Sentence
By Walter F. Roche Jr.
Federal prosecutors argued today that every cent paid to a drug compounding firm over a six year period should be considered as fraudulent conduct in the upcoming sentencing of the company's former president.
In an eight-page filing and oral arguments, the prosecutors said Barry J. Cadden's upcoming sentencing should be based on the loss of $132.8 million, the gross revenue of the New England Compounding Center from 2006 to 2012.
Cadden, the president and part owner of NECC was convicted in late March on 57 counts of racketeering, conspiracy and mail fraud. His sentencing is scheduled for June 26. He was acquitted on 25 counts of second degree murder.
Today Cadden's attorneys argued that their client should either be acquitted of those charges or given a new trial due, at least in part, to the conduct and tactics of prosecutors in the 10-week trial.
They argued that prosecutors from the U.S. Attorneys office improperly presented evidence to jurors during closing arguments.
U.S. District Judge Richard G. Stearns took the motions under advisement following the 11 a.m. hearing.
Cadden was one of 14 people indicted by a federal grand jury following a two year probe of a deadly fungal meningitis outbreak caused by fungus laden drugs shipped by NECC to health providers across the country.
In their filing Assistant U.S. Attorneys Amanda Strachan and George Varghese also indicated that their sentencing recommendation will include a so-called upward departure in the length of prison time based on aggravating circumstances.
Those circumstances include the fact that there were 10 or more victims and that Cadden acted with the conscious or reckless risk of death or serious bodily injury."
They also cited the fact that there were "a large number of vulnerable victims" and that Cadden was an organizer or leader of a criminal enterprise and that he "abused a position of trust."
To bolster the argument that all NECC's sales should be considered fraudulent, they cited assurances Cadden made to customers about the quality of NECC's products.
Had customers known the truth, the filing states, they never would have purchased any NECC products.
"Where the product is worthless, the loss should be calculated using the entire price paid," the memorandum states, adding that Cadden sold "grossly substandard drugs."