Saturday, July 8, 2017

Prosecutors Seek $75.5 Million From Cadden

By Walter F. Roche Jr.

Federal prosecutors are asking a judge to order a former drug company president to forfeit $75.5 million following his conviction on racketeering and conspiracy charges.
In a filing this week in U.S. District Court in Boston, Mass. prosecutors said the $75.5 million represents the gross proceeds received by Cadden's company, the New England Compounding Center, from March 26, 2010 and October of 2012 when NECC was shutdown.
The gross proceeds, according to the motion, were computed by an accountant, Roger H. Edwards, who also testified for the prosecution during Cadden's ten week trial.
Cadden was convicted by a jury on March 22. He was sentenced to a nine year prison sentence by U.S. District Judge Richard G. Stearns last month.
In a related development this week Cadden filed notice that he is appealing both his conviction and the prison sentence.
The government forfeiture motion argues that the forfeiture should not be reduced as a result of a recent U.S. Supreme Court ruling. In that case the court ruled that a Tennessee man could not be required to forfeit money when he did not actually profit from the illegal activity.
Assistant U.S. Attorneys Amanda Strachan and George Varghese said the so-called Honeycutt ruling should not apply to the racketeering charges on which Cadden was convicted.
In the alternative, they argued, if Stearns determines the ruling does apply, then Cadden should be ordered to forfeit $13.2 million.
The $13.2 million is the amount Cadden and his wife Lisa received during the same time period, according to the government's computation. Lisa Cadden was a shareholder in NECC.
While Cadden was convicted on racketeering, conspiracy and mail fraud charges, the jury acquitted him on second degree murder charges.
Codefendant Glenn Chin is scheduled to go on trial on Sept. 19. He too is facing second degree murder charges.
The two were among 14 persons connected to NECC who were indicted following a federal probe of the 2012 fungal meningitis outbreak caused by fungus laden steroids from the drug compounding firm. Some 76 patients in 20 states died in the outbreak.

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