Thursday, October 26, 2017

Cadden to Forfeit $7.5 Million

By Walter F. Roche Jr.

BOSTON- A federal judge has approved an order authorizing the seizure of $7.5 million in assets from the former president and part owner of a drug compounding company blamed for a deadly fungal meningitis outbreak.
U.S. District Judge Richard G. Stearns this week approved the order requested by prosecutors from the U.S. Justice Department.
Stearns' order approves the seizure of four properties owned by Cadden and his wife along with a boat, a BMW and funds in two accounts.
Under the order federal agents can auction off the three properties Cadden and his wife own in Wrentham, Mass. and an oceanside home in Rhode Island.
Cadden was convicted in March of mail fraud, racketeering and violations of the Food Drug and Cosmetic Act. He was cleared on 25 counts of second degree murder.
Yesterday Cadden's co-defendant, Glenn Chin was convicted and acquitted on parallel charges. He faces a Jan. 30, 2018 sentencing.
Cadden was the president of the New England Compounding Center and Chin was a supervising  pharmacist for the now defunct Framingham, Mass. firm.
In addition to the properties Stearns' order approved the seizure of jewelry and $95,923 in a bank account and $1.4 million in an investment account.
Assistant U.S. Attorneys Amanda Strachan and George Varghese also have asked Stearns to approve a $73 million restitution order. They have indicated they will attempt to have funds recovered go to victims of the 2012 outbreak. Stearns has yet to rule on that request and Cadden has asked for additional time to respond.
Cadden began serving a nine year federal prison sentence in August.
The outbreak sickened 780 patients killing 76 of them. The illnesses and deaths were caused by fungus contaminated methylprednisolone acetate produced by NECC.
Contact: wfrochejr999@gmail.com

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