Outbreak's Aftermath Rolls On

Major events in 2019* **

January- Gregory Conigliaro, former part owner and vice president of the New England Compounding Center files appeal of his jury conviction on the charge he conspired to defraud the U.S. Food and Drug Administration.
Appeals court orders the release of the addresses of jurors who heard a major NECC trial.

February- Barry Cadden and Glenn Chin are arraigned in Michigan on second degree murder charges.
Defefendant Alla Stepanets has her appeal denied.

April- Kathy Chin and Michelle Thomas on trial for violations of the Food Drug and Cosmetic Act(FDCA).

May- Alla Stepanets sentenced to one year of probation for FDCA violations.
Gene Svirskiy sentenced to 30 month prison sentence. Christopher Leary gets eight month home confinement.

June- U.S. District Judge Overturns Jury Verdicts on Conigliaro, Carter.
Cadden, Chin face first hearing on Michigan Murder Charges.

July- Gene Svirskiy begins serving 30 month sentence for racketeering, mail fraud and related charges.

September- Chin, Cadden face Michigan hearing on second degree murder charges.
Seventh anniversary of the outbreak shows victims still suffering serious after effects.

October- Kathy Chin, Michelle Thomas Appeals Denied.
Michigan Judge Rules Cadden, Chin must attend hearing.

November- Three judge panel hears appeals in Cadden, Chin cases.
Michigan murder hearings resume. Next session in February.

December- Cadden House sold for $1.3 million.
Chin, Cadden remain in Michigan lock-up.
Kathy Chin and Michelle Thomas get probation.

* See www.meningitis-etc.blogspot.com for complete details.
** See https://meningitis-etc.blogspot.com/2019/12/necc-scorecard.html for indictment scorecard.

Victims Question Chin's Offer

By Walter F. Roche Jr.

In a Boston, Mass. courtroom last week a former employee of the New England Compounding Center,the company blamed for a deadly outbreak told a federal judge that she wanted to start a campaign to raise funds for the victims of that 2012 public health disaster.
Kathy Chin made the disclosure during her sentencing hearing. She made the statement to U.S. District Judge Richard G. Stearns moments before he imposed a sentence following her conviction of four violations of the Food Drug and Cosmetic Act.
She told Stearns that she hoped federal prosecutors would supply her with the names of the victims so she could contact them. Subsequently she was sentenced to two years of probation.
Though there were no victims present for the Thursday hearing, a subsequent query to victims brought a less than favorable response.
"I do not believe anything she or the others (defendants) say. They have had seven plus years to try to help the victims. And there was nothing done. They are only looking out for themselves," wrote Linda S. Boggs, a Virginia victim of the outbreak in an email response to requests for comment.
She, like other victims expressed concerns about the possible disclosure of her name and any contact information.
"If she is sincere she can work through our attorneys," Boggs added.
Donna Borton, the spouse of a Michigan victim, said she was surprised to hear of Chin's offer in light of the fact that the Chins sought a court appointed attorney because they couldn't afford one.
Kathy Chin's husband, Glenn, was also a defendant in the case and is now serving an eight year prison sentence following his conviction on racketeering and mail fraud charges.
Stating that she was unsure of Kathy Chin's motive for making the offer, Borton said she and her husband Ken were "a little suspicious of her intentions."
"We really don't want her to have any of our personal information," Borton wrote, adding that they and other victims "pretty much agree that no one trusts anyone with any ties to NECC."
Dawn Elliott, an Indiana Victim,was equally skeptical.
"In my opinion I will truly be surprised if Kathy Chin does anything. I feel it is too little too late and had she wanted to really do anything she would have done it a long time ago. I truly do not believe she is sincere. She may truly be sorry, but I don’t think she will truly do a thing to help anyone," Elliott wrote.
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Sentencing Set for Key NECC Witness

By Walter F. Roche Jr.

An April 22 date has been set for the long delayed sentencing of a key government witness in the criminal case stemming from the deadly 2012 fungal meningitis outbreak.
In an order issued late last week U.S. District Judge Richard G. Stearns set the date for Robert Ronzio of North Providence, R.I., who was the head of sales at the New England Compounding Center, the company that produced thousands of vials of an injectable steroid laden with deadly fungi.
Under a plea agreement with federal prosecutors, Ronzio entered a guilty plea to conspiracy to defraud the U.S. Food and Drug Administration in December of 2016.
Ronzio was a key witness in the trials of Barry Cadden and Glenn Chin. Cadden was NECC's president and part owner while Chin was a supervising pharmacist in the clean room where the contaminated methylprednisolone acetate was prepared.
Both Cadden and Chin were found guilty of racketeering, conspiracy and mail fraud charges and are now serving federal prison sentences. The two are also facing second degree murder charges in Michigan.
Ronzio also testified in subsequent trials of NECC defendants, including the most recent trial of two former NECC pharmacists.
Ronzio's sentencing had been scheduled for Jan. 31, 2018 but was then delayed indefinitely under a joint agreement between federal prosecutors and Ronzio's lawyers.
Under his plea agreement Ronzio admitted to being involved in a conspiracy to defraud the U.S. Food and Drug Administration.
Ronzio's sentencing is scheduled for 3 p.m. on April 22 in Stearns' Boston, Mass. courtroom.
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NECC Scorecard

NECC Indictment Scorecard
Here are the names of those indicted in the probe of the New England Compounding Center and the outcome of their cases.

Barry J. Cadden*: convicted of racketeering, racketeering conspiracy, mail fraud and violations of the Food Drug and Cosmetic Act (FDC Act). (Cleared of second degree murder charges) Currently serving nine year federal prison sentence. Release date June 6, 2025.
Glenn Chin*: found guilty of racketeering, racketeering conspiracy, mail fraud and violations of the FDCA. (Cleared of second degree murder charges) Serving an eight year federal prison sentence. Release date Feb. 26, 2025.
Gene Svirskiy: Convicted of racketeering, racketeering conspiracy, violations of the FDCA. Serving 30 month prison sentence. Release date Aug. 26, 2021
Scott M. Connolly: entered guilty plea to nine counts of mail fraud. Sentenced to two years probation.
Sharon P. Carter: convicted of conspiracy to defraud the federal government. Acquitted on appeal.
Alla V. Stepanets: convicted of six violation of the FDCA. Sentenced to one year probation.
Gregory A. Conigliaro: convicted of conspiracy to defraud the U.S. Food and Drug Administration. Acquitted on appeal.
Robert A. Ronzio: entered guilty plea to conspiracy to defraud the FDA. Sentencing delayed indefinitely.
Christopher Leary: convicted of mail fraud and violations of the FDCA. Sentenced to eight months home confinement.
Kathy S. Chin: Convicted of four violations of the FDCA with intent to defraud. Sentenced to two years probation.
Michelle L. Thomas: Convicted of two violations of the FDCA with intent to defraud. Sentenced to one year probation.
Carla R. Conigliaro: Pleaded guilty to violations of financial transaction reporting laws. Sentenced to probation
Douglas A. Conigliaro Pleaded guilty to violations of financial transaction reporting laws. Sentenced to probation.
Joseph M. Evanosky: cleared of all charges.
* Cadden and Chin are still facing second degree murder charges in Michigan.
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Final Defendant Gets 1 Year Probation

By Walter F. Roche Jr.

The final defendant in the criminal case stemming from a deadly fungal meningitis outbreak was sentenced to one year of probation today in a session before U.S. District Judge Richard G. Stearns in his Boston, Mass. courtroom.
Michelle Thomas, who was a pharmacist at the New England Compounding Center, was sentenced to one year of probation and ordered to pay a $200 special assessment. She is the last of 14 originally indicted following a two year probe of the deadly 2012 fungal meningitis outbreak.
Eleven of the 14 were found guilty or entered guilty pleas. Two of the 14 had their jury convictions overturned by Stearns and one of the 14 was acquitted on a jury verdict.
Thomas was convicted on two counts of violating the Food Drug and Cosmetic Act (FDCA). Prosecutors charged that she approved the shipping of prescriptions for patients with obviously fake names.
The one year of probation was one year less than that recommended by federal prosecutors.
Co-defendant Kathy Chin was sentenced Thursday to two years of probation. Chin was convicted of four counts of violating the FDCA.
Three of the original 14, Glenn Chin, Barry Cadden and Gene Svirskiy are currently serving jail sentences. Kathy Chin is the spouse of Glenn Chin.
Kathy Chin and Thomas were not charged with any involvement in the production of the fungus riddled drugs that caused the 2012 fungal meningitis outbreak.
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NECC Pharmacist Gets 2 Years Probation

By Walter F. Roche Jr.

A one time licensed pharmacist who approved prescriptions for shipment that were prescribed for obviously fictitious patients was sentenced today to two years of probation by U.S. District Judge Richard G. Stearns sitting in Boston, Mass.
The sentence was imposed on Kathy Chin who worked as a pharmacist at the now defunct New England Compounding Center, the company blamed for a 2012 deadly fungal meningitis outbreak. The charges against Chin did not involve the contaminated drugs that caused the outbreak.'
She was charged with violations of the Food Drug and Cosmetic Act.
The sentence imposed by Stearns was the same as recommended by the U.S. Attorney's office.
Kathy Chin is the spouse of Glenn Chin, who was a supervising pharmacist at NECC and in charge of the clean room where the contaminated drugs were produced. He is currently serving an eight year sentence following his conviction on racketeering, conspiracy and mail fraud charges.
The Chins were two of 14 persons with ties to NECC who were indicted following a two year probe of the fungal meningitis outbreak. Another defendant, Michelle Thomas, is scheduled for sentencing tomorrow.

Cadden, Chin Remain in Michigan

By Walter F. Roche Jr.

The two primary defendants in the criminal case stemming from a deadly fungal meningitis outbreak remain jailed in Michigan where they are facing 11 additional second degree murder charges.
Officials of the Michigan Attorney General's office say that Barry J. Cadden and Glenn Chin will be kept in the Livingston County jail in Howell until mid February when two days of hearings are scheduled on the second degree murder charges.
The two already are serving sentences in federal prison following their conviction on racketeering, mail fraud and conspiracy charges.
According to Michigan officials the two are being kept in Michigan to avoid the expense of transporting them back and forth to federal prisons in Pennsylvania where they have been serving their federal sentences.
Cadden has been serving a nine year sentence at the federal prison in Loretto, PA., while Chin has been serving an eight year sentence at the federal prison in Allenwood, PA.
They were brought to Michigan for a pre-trial hearing in November and are scheduled for appearances on Feb.13 and 14th in Livingston County District Court.
Assistant John Buck of the Michigan Attorney General's office said the continued hearings are being held to determine if there is probable cause to bring the two to trial on the second degree murder charges.
The two were charged in the deaths of Donna Kruzich; Paula Brent; Lyn Laperriere; Sally Roe; Mary Plettl; Gayle Gibson; Patricia Malafouris; Emma Todd; Jennie Barth; Ruth Madouse and Karine Baxter.
Cadden was president and part owner of the New England Compounding Center, the company that produced the contaminated steroids that cause the 2012 outbreak. Chin was the supervising pharmacist in the clean room where the tainted drugs were produced.
The November sessions marked the second time Cadden and Chin appeared in a Michigan court room. They both were present for an arraignment session in February, following which they were sent back to Pennsylvania.
Lawyers for the two had asked that they not be required to attend the February sessions but Judge Shauna Murphy ruled that both must be present.
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Final NECC Sentencing Delayed

Sentencing sessions for the two final defendants in the criminal case stemming from a deadly fungal meningitis outbreak has been delayed once again.
In brief orders issued today in U.S. District Court in Boston, Mass. U.S. District Judge Richard G. Stearns set separate dates for the sentencing of Michelle Thomas and Kathy Chin, two pharmacists who worked at the New England Compounding Center, the company that caused the 2012 outbreak.
Kathy Chin will be sentenced on Dec. 19 at 3 p.m. while Michelle Thomas will be sentenced 24 hours later.
Both were convicted of violations of the Food Drug and Cosmetic Act when they approved for shipment drugs prescribed for obviously fake named patients.
The two had most recently been scheduled for sentencing on Dec. 17 and Dec. 19.
Chin is the spouse of Glenn Chin, also a former NECC pharmacist, who is serving an eight year prison sentence following his conviction on racketeering, conspiracy and mail fraud charges. Glenn Chin was a supervising pharmacist in the clean room where drugs contaminated with a deadly fungus were prepared.
Kathy Chin and Thomas were not involved in the preparation of the deadly steroids.
Federal prosecutors have recommended that Thomas and Kathy Chin be sentenced to two years of probation.
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Probation Urged for Final NECC Defendants

By Walter F. Roche Jr.

Federal prosecutors are recommending a sentence of two years probation with no jail time for the two final defendants in the criminal case stemming from a deadly fungal meningitis outbreak.
In an 11-page filing today in U.S. District Court in Boston, Mass., the U.S. Attorneys office asked U.S. District Judge Richard G. Stearns to impose the identical sentences on Michelle Thomas and Kathy Chin, who were both employed at the New England Compounding Center, the company blamed for the 2012 outbreak. Both were licensed pharmacists at the time of their employment
Chin and Thomas were both convicted of violations of the Food Drug and Cosmetic Act when they approved the shipment of drugs with prescriptions made out for obviously fake named patients.
The two were among 14 indicted in December of 2014 following a two year probe of the outbreak. Three of those 14 are now serving federal prison sentences.
Alla Stepanets, another of the 14 who held a similar job to Thomas and Chin, was given a sentence of one year of probation.
In the filing today Assistant U.S. Attorney Amanda Strachan wrote that while the crimes committed by Chin and Thomas were not as serious as those committed by other pharmacists working at NECC, their crimes "were an abuse of the position of trust that each held as a licensed pharmacist."
Stating that the issuance of prescription drugs in bulk without valid prescriptions put patients at risk, the brief adds that the Thomas and Chin's "intentional misconduct allowed NECC to perpetuate fraud."
Chin and Thomas "turned their backs on their responsibilities as licensed pharmacists," the filing continues.
Citing the trial testimony of Samuel Penta, a Massachusetts Pharmacy Board official, the brief states that the jobs performed by Thomas and Chin, final verification, was "a necessary step in the process."
Prescriptions approved by the two were made out for patients named Chester Cheeto, L.L. Bean and Coco Puff, the brief adds.
Charging that there were obvious red flags the two defendants ignored, Strachan noted that neither of them had accepted responsibility for their actions.
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Palatial Cadden Home Sold for $1.3 Million

By Walter F. Roche Jr.

The palatial suburban Boston home of a convicted former drug company owner has been sold for $1.3 million and half the proceeds will go to the federal government.
A deed filed today at the Norfolk County Registry of Deeds in Dedham, Mass. transfers the ownership of the 9,000 square foot former home from Barry J.. Cadden and his wife, Lisa to Michael and Lisa Ferdenzi.
Cadden headed the New England Compounding Center and his former home was subject to a forfeiture order approved by U.S. District Judge Richard G. Stearns. Under a negotiated forfeiture agreement half of the proceeds go to the federal government with the other half going to Lisa Cadden. She was never charged with any wrongdoing.
The Caddens owned a 35 per cent share of NECC and together they collected some $72 million from the company in the six years before the drug compounding firm was shutdown in 2012, according to court filings.
Stearns today approved an order officially authorizing the sale.Other documents filed in Dedham transfer Barry Cadden's interest in the property to the U.S. Justice Department.
Barry Cadden is currently serving a nine year federal prison sentence following his conviction on racketeering, conspiracy and mail fraud charges. He was one of 14 indicted in late 2014 following a two year investigation of the 2012 fungal meningitis outbreak which sickened some 800 patients. Over 100 of them have died.
The home had been on the market for nearly a year and the final sales price is less than half of the original $2.9 million asking price. The deed covers the main house at 13 Manchester Drive and two adjacent lots.
Real estate listings for the home describe it as "a magnificent private enclave" with five bedrooms, a heated salt water pool and a bocce lawn.
"Exemplary Craftsmanship and boutique materials highlight the construction of this fabulous estate," the listing states. (https://www.youtube.com/watch?v=MXZXykJXuh0)

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Recent Study on Fungal Meningitis

Current treatment for fungal meningitis is fueling drug resistance

by University of Liverpool
Gram stain of meningococci from a culture showing Gram negative (pink) bacteria, often in pairs. Credit: public domain

A common first-line treatment approach for cryptococcal meningitis in low-income countries is being compromised by the emergence of drug resistance, new University of Liverpool research warns.

Published in the journal mBio, the findings highlight the need to develop new drugs and treatment regimens for the lethal brain infection, which kills around 180,000 people each year.

Cryptococcal meningitis is a leading cause of death among adults with HIV/AIDS in sub-Saharan Africa. In many parts of the world, the antifungal drug fluconazole is the only agent that is available for the initial treatment of the infection, despite considerable evidence that long-term outcomes are poor.

Drug resistance is thought to play a role in these poor outcomes, but solid data is currently lacking and a better understanding of the relationship between fluconazole exposure and the emergence of resistance has been needed.

In an experimental study in a novel hollow fibre model and mice, the relationship between drug exposure and both antifungal killing and the emergence of resistance to fluconazole was quantified. These results were then bridged to patients in a clinical study where patients with cryptococcal meningitis in Tanzania receiving fluconazole were studied.

The findings showed that fluconazole resistance is caused by duplication of the fungus' chromosomes and occurs while patients are on therapy. Simulations from mathematical models fitted to the patients' data suggested that only 12.8 percent of patients receiving fluconazole at the recommended 1,200 mg/day were completely free of the fungus after two weeks. Furthermore, 83.4 percent had a persistent subpopulation that was resistant to fluconazole. Preventing this would require significant dosage escalation of fluconazole beyond what is currently recommended.

William Hope, Professor of Therapeutics and Infectious Diseases at the University of Liverpool, said: "This study is unique in that it combines information from experimental models of cryptococcal meningitis with data from patients receiving fluconazole as monotherapy, which remains the norm in much of Africa, despite not being consistent with current treatment recommendations from the WHO.

"We've shown that the emergence of resistance is related to drug exposure and occurs with the use of clinically-relevant monotherapy regimens. Hence the only drug available to many patients in Africa is compromised by the ability of the fungus to develop resistance while the patient is taking fluconazole.

"Our findings underscore the urgent need for the development of new agents and combinations to reduce the global toll of cryptococcal meningitis."

Antimicrobial resistance is a growing threat and there has been a global push to address to develop new drugs. Led by Professor Hope, the University of Liverpool's Centre for Antimicrobial Pharmacodynamics provides state-of-the-art research facilities for PK/PD studies and offers preclinical and early phase clinical support to ensure new drugs are developed in a streamlined manner.

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Cadden House Sale for $1.3 Million

By Walter F. Roche Jr.

The home of a jailed former drug company executive is being sold for $1.3 million, less than half of the original asking price.
The sales price and the names of the purchasers were disclosed today in filings in U.S. District Court in Boston, Mass. The details were disclosed in a series of filings in the criminal case of Barry J. Cadden, the one time president and part owner of the defunct New England Compounding Center.
The filings, which were approved by U.S. District Judge Richard G. Stearns, lift liens that were placed on the Wrentham, Mass. property following Cadden's conviction on racketeering, conspiracy and mil fraud charges.
Cadden is now serving a nine year prison sentence at the federal prison in Loretto, Pa.
According to the filings the purchasers of the property are Michael and Lisa Ferdenzi.
Under the terms of a negotiated forfeiture agreement one half of the proceeds of the house sale will go to the federal government. The other half goes to Lisa Cadden, the wife of Barry.
The five bedroom home was first put on the market with an asking price of nearly $3 million. It has been on the market for 343 days.
Described as "a magnificent private enclave," the 9,000 square foot home has five bedrooms, a salt water pool, a six person bar and a bocce lawn.
Cadden headed NECC, which is the company blamed for the deadly 2012 fungal meningitis outbreak. Cadden was one of 14 persons tied to NECC who were indicted following a two year probe of the outbreak.
NECC shipped out thousands of vials on methylprednisolone acetate contaminated with deadly fungi. The drugs were then injected into the spines and joints of unsuspecting patients. More than 800 of them were sickened and over 100 have died.
Contact: wfrochejr999@gmail.com

Cadden Home Sale Imminent

By Walter F. Roche Jr.

A federal judge has lifted liens on the home of a former drug company president, apparently clearing the way for the sale of the five bedroom 9,000 square foot property in suburban Boston for about $1.5 million..
U.S. District Judge Richard G. Stearns today filed an order lifting federal government liens on the Wrentham, Mass. home of Barry J. Cadden. Cadden is currently serving a nine year federal prison sentence following his conviction on racketeering, conspiracy and mail fraud charges.
The home at 13 Manchester Drive has been on the market for nearly a year and the original asking price of nearly $3 million has been slashed several times to the current level of $1.5 million.
The real estate listing for the home currently states "under contract."
Under a forfeiture agreement with federal prosecutors half of the proceeds from the sale will go to the federal government.
Under the negotiated agreement Cadden and his wife Lisa were allowed to retain ownership of a Rhode Island coastal property in return for the payment of $369,000. Ownership of that property in North Kingston was recently transferred for no consideration to a trust headed by one of Cadden's sons.
Cadden was president and part owner of the New England Compounding Center, the defunct company blamed for the 2012 fungal meningitis outbreak which sickened some 800 patients, killing over 100 of them.
Court records show federal prosecutors consented to lifting the liens on the property. Though prosecutors had expressed hopes that the forfeiture proceeds could go to outbreak victims, Stearns has ruled that under federal law the victims are the health care facilities and physicians who actually purchased thousands of vials of a steroid, methylprednisolone acetate, loaded with deadly fungi. The steroids were injected into the spines and joints of unsuspecting patients.
Details of the sale won't be known until a deed is recorded in the Norfolk County Registry of Deeds.
Cadden is due for release from the federal prison in Loretto, PA on June 6. 2025, but he and co-defendant Glenn Chin are still facing multiple second degree murder charges in Michigan. The two were brought to Michigan for a recent preliminary hearing on the murder charges.
Contact: wfrochejr999@gmail.com

Cadden, Chin Case Off Till Feb.

By Walter F. Roche Jr.

(NOTE: Today's court details provided by Peggy Nuerenberg)

A preliminary hearing in the case of two former pharmacists each charged with 11 counts of second degree murder will not resume until mid-February in Livingston County Michigan District Court.
The extended delay was disclosed during a hearing today in which an employee of a testing laboratory, Tiffsny Hyde, was questioned extensively about the operations of the company. The questioner was Michelle Peirce, one of the defense lawyers.
The testing company Analytic Research Laboratories (ARL) of Oklahoma, was hired to test drugs produced by the New England Compounding Center, the company blamed for a deadly 2012 fungal meningitis outbreak.
The testimony came in the trial of Barry J. Cadden and Glenn A. Chin. Cadden was part owner and president of NECC, while Chin was a supervising pharmacist overseeing the clean room where fungus infested steroids were produced. Peirce was one of Cadden's defense lawyers in the federal criminal case.
The session was the second day of a hearing to determine whether there is sufficient evidence for the case to go to trial.
Cadden and Chin are serving federal prison terms following their conviction on racketeering, conspiracy and mail fraud charges.
The other witness to testify Friday was Anurag Malani, a physician who treated many of the Michigan victims of the deadly outbreak.
Dates set for the February hearings are Feb. 13, 14, 19, 20, and 21.

Medical Testimony in Chin, Cadden Case

By Walter F. Roche Jr.

NOTE: This report is based on accounts provided by local news sources and victims, including Donna Borton who attended a hearing today in Livingston County District Court.

An infectious disease expert testified today about how fungus contaminated steroids attacked the brains of victims of the 2012 fungal meningitis outbreak.
Speaking at a pre-trial hearing in the second degree murder cases of Barry J. Cadden and Glenn A. Chin, Dr Carol Kauffman said that when fungus laden steroids are injected into the spinal cavity the result can be meningitis, strokes and even localized infections.
Kauffman, who became directly involved in the early investigation of the 2012 outbreak, said the infected steroids came in several lots shipped by the New England Compounding Center, the defunct company where Cadden and Chin worked.
She said an NECC lot of methylprednisolone acetate dated June 29 was especially virulent. NECC drugs eventually sickened some 800 patients including dozens who died.
Cadden was president and a major stockholder in NECC while Chin was a supervising pharmacist in the clean room where the steroids were made.
Kauffman noted in her testimony that NECC was located adjacent to a recycling business. It was owned by Gregory Conigliaro, who was also a part owner of NECC. Defense attorneys tried unsuccessfully to block testimony about the recycling center.
Also testifying at the probable cause hearing was Dr. Edward Washabaugh who was one of the Michigan physicians who unwittingly injected patients of Michigan Pain Specialists with NECC drugs. Seventeen Michigan Pain Specialists patients ultimately died.
Washabaugh was also a witness in Cadden's federal trial in U.S. District Court in Boston.
Cadden is now serving a nine year federal prison sentence following his conviction on racketeering, conspiracy and mail fraud charges.
Chin was also convicted on parallel federal charges and is serving an eight year federal jail sentence. However, two separate federal juries declined to convict Cadden or Chin on second degree murder charges including some of the 11 they are now charged with in Michigan. Three of the eleven victims in the Michigan case, were not named as victims in the federal case.
Chin and Cadden, both wearing orange jump suits, sat in the courtroom yesterday during the day long session. Both were brought to Howell late last week from separate federal prisons in Pennsylvania.
A third witness to appear Thursday was Dr. Bader Cassin, who performed autopsies on some of the victims and described the fatal damage caused by the tainted drugs.
An employee of Michigan Pain Specialists testified about how the clinic came to order drugs from NECC and the apparent lack of notification by NECC when problems with their drugs first surfaced.
Lawyers for Cadden moved to have their client released from handcuffs, but the motion was denied.

Cadden, Chin Hearing

The preliminary examination for defendants’ Cadden and Chin is scheduled for Thursday, November 14th at 8:00 am at the 53rd District Court 204 S. Highlander Way, Howell.



If you have any questions please do not hesitate to contact me.



John Buck

Supervisory Special Agent

Michigan Attorney General

Criminal Division/Detroit

517-719-3430

Cadden, Chin Arrive in Michigan

By Walter F. Roche Jr.

Two former pharmacists facing multiple second degree murder charges are in custody in Livingston County Michigan where they will be present for two days of pre-trial hearings next week in Livingston District Court.
Kelly Rossman-McKinney, spokeswoman for Michigan Attorney General Dana Nessel, said Barry J. Cadden and Glenn Chin arrived in Michigan Wednesday night. They were transported from separate federal prisons in Pennsylvania. It marks their second appearance on the Michigan murder charges.
Cadden is serving a nine year federal sentence following his conviction on racketeering, conspiracy and mail fraud charges. Chin is serving an eight year sentence for his conviction of the same crimes.
Cadden was a part owner and president of the New England Compounding Center, the drug firm blamed for a deadly 2012 fungal meningitis outbreak.
Chin was a supervising pharmacist overseeing the clean room where fungus laden drugs were prepared. That drug, methylprednisolone acetate, was injected into the spines and joints of unsuspecting patients seeking relief from chronic pain.
The two also were charged with second degree murder in the federal case but jurors declined to convict them on those charges.
The hearings on Thursday and Friday of next week (Nov. 14 & 15) will be a "preliminary examination" in which prosecutors will present witnesses to substantiate the charges. Michigan witnesses are scheduled to appear next week while out-of-state witnesses will appear at a subsequent hearing in December.
The two were charged in the deaths of Donna Kruzich; Paula Brent; Lyn Laperriere; Sally Roe; Mary Plettl; Gayle Gibson; Patricia Malafouris; Emma Todd; Jennie Barth; Ruth Madouse and Karine Baxter.
Earlier this week a federal appeals court in Boston, Mass. heard arguments on appeals and cross appeals on the federal charges on which Cadden and Chin were convicted. The three judge panel took the matter under advisement following a more than two hour hearing.
Federal prosecutors sought to increase the penalties imposed by U.S. District Judge Richard G. Stearns while defense attorneys challenged the validity of some of the charges. Neither defendant was in attendance.
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Court Hears Cadden, Chin Appeals

By Walter F. Roche Jr.

BOSTON-A federal appeals court judge said today he doesn't understand how patients sickened in a deadly fungal meningitis outbreak are not considered victims, even vulnerable victims.
U.S. Appeals Court Judge Kermit Lipez made that statement during a more than two hour hearing on appeals stemming from the conviction of two key defendants, Barry J. Cadden and Glenn Chin, in the federal probe of the 2012 outbreak.
"There's something counter-intuitive in that argument,"Lipez said following s statement by Cadden's attorney that the patients sickened in the 2012 outbreak do not meet the definition of victims.
How are they not vulnerable victims? Lipez added.
Lipez was one of three judges hearing the appeals and counter-appeals filed following Chin and Cadden's conviction on racketeering conspiracy and mail fraud charges. Both are now serving sentences at separate federal prisons in Pennsylvania. Cadden was sentenced to a nine year term while Chin was given an eight year sentence.
While prosecutors are seeking to impose additional penalties against the two former officials of the New England Compounding Center, attorneys for Cadden and Chin are seeking to have some of the charges and penalties reduced or eliminated. Cadden was president and part owner of NECC and Chin was a supervising pharmacist.
One point at issue is the U.S. Justice Department's claim that some $80 million in restitution should be ordered for patients sickened in the outbreak. A district court judge rejected that claim.
While some of the comments by the three judges appeared to support the position of prosecutors, others did not.
Lipez, for instance, cited the argument by Bruce Singal, Cadden's lawyer, that most of the products produced by NECC did not cause any harm and were, in fact, effective.
"All these years and nothing went wrong," Lipez responded. "How can you say all these drugs were valueless?" he asked in response to government arguments that all NECC sales between 2010 and 2012 should be used to determine the penalties imposed.
Joined by Appeals Court Judges David J. Barron and Norman Stahl, Lipez questioned whether NECC's promise of compliance with industry standards was in fact made to all of its customers.
And, he noted that the strict standards required for so-called sterile drugs, like methylprednisolone acetate did not apply to creams and ointments that accounted for many of the drugs the now defunct Framingham Mass. company produced and sold.
Assistant U.S. Attorney David Lieberman argued that Cadden knew or should have known that sending out sterile drugs that were not properly prepared could create a serious and highly likely risk of death or serious injury.
Singal, however, argued that the trial testimony by victims and their survivors was highly prejudicial. He noted that defense attorneys had from the outset conceded that NECC steroids were responsible for the outbreak which ultimately sickened some 800 victims, killing more than 100 of them.
He also stressed that second degree murder charges brought by prosecutors were rejected by the jurors.
Chin's lawyer, Jamie Sultan, argued that the penalties imposed by U.S. District Judge Richard G. Stearns were fair and reasonable and increased penalties sought by government attorneys should be rejected.
The eight year sentence imposed by Stearns was "totally appropriate," he said.
Barron said he was a little puzzled about what the prosecutors wanted for an increased sentence.
"How can they now argue for more?" he asked.

Cadden, Chin En Route to Michigan

By Walter F. Roche Jr.

The two principal defendants in the 2012 fungal meningitis outbreak are apparently on their way to Michigan for a preliminary hearing on the 11 counts of second degree murder leveled against them by the Michigan Attorney General.
According to the federal Bureau of Prisons, Barry J. Cadden and Glenn Chin were temporarily released from separate federal prisons in Pennsylvania. They have been ordered to appear Nov. 14 and Nov. 15 in District Court in Howell, Mich. for a preliminary examination on the second degree murder charges.
District Court Justice Shauna Murphy ruled in September that the two must be present for the two day session.
Cadden was president and part owner of the New England Compounding Center and Chin was a supervising pharmacist reporting to Cadden. The company shipped thousands of vials of a steroid contaminated with deadly fungi.
The charges stem from the deaths of 11 Michigan patients who had been injected with NECC drugs.
Lawyers for Cadden and Chin had argued that the two defendants did not need to be present, but Murphy sided with Assistant Attorney General Gregory Townsend who said he could not recall any case with such serious charges where defendants were not present.
nder Michigan law at a preliminary examination hearing the prosecution has to show that a crime has occurred and it is more likely than not that the defendants committed the crimes.
Cadden and Chin were convicted on racketeering, conspiracy and mail fraud charges in federal court, but two separate juries cleared them of second degree murder charges. Those included five of the cases now charged in the Michigan case.
The action in the Michigan case comes as a three judge federal panel is hearing appeals and cross appeals on the federal charges. A hearing is set for 9:30 a.m. Tuesday in Boston, Mass. Neither defendant will be present.
Cadden is serving a nine year sentence and Chin is serving an eight year sentence on their federal convictions.
The two were present in Michigan in February for their formal arraignment on the Michigan charges.
Contact:wfrochejr999@gmail.com






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Three Judge Panel to Hear Appeals

By Walter F. Roche Jr.

The three judge panel that will hear appeals and cross appeals from the principal criminal cases stemming from a deadly fungal meningitis outbreak includes a judge who authored a controversial memo justifying a drone attack on a U.S. citizen on foreign soil.
U.S. Circuit Judge David J. Barron and two of his colleagues on the 1st Circuit Court of Appeals will hear pleas in the cases of Barry J. Cadden and Glenn Chin, both tied to the New England Compounding Center, the company blamed for the outbreak.
Chin and Cadden were both convicted of racketeering, conspiracy and mail fraud charges and are now serving sentences - eight years for Chin and nine for Cadden - in separate federal prisons in Pennsylvania.
Federal prosecutors are asking the appeals court to, in effect, increase the penalties imposed on Cadden and they want the panel to reverse a decision by U.S. District Judge Richard G. Stearns that patients sickened in the outbreak do not qualify for some $80 million in restitution as victims under federal law.
Barron, a former acting assistant U.S. Attorney General, authored a secret 2010 memo concluding that President Obama had the legal authority to order a deadly drone attack on an American citizen, a suspected terrorist who was in Yemen.
Three years later Obama nominated Barron, then a Harvard Law School professor, to the post he now holds
The other two judges on the panel, Norman Stahl and Kermit Lipez, authored a decision finding that warrant-less searches of cellphones by police are categorically unlawful. Lipez, a senior judge, was an appointee of President Clinton. Stahl, also a senior judge, was appointed by George H.W. Bush.
Stearns already has seen a separate appeals court panel overturn his decision to dismiss some of the charges against three other NECC co-defendants, including Chin's wife, Kathy. A jury subsequently found her guilty and she awaits sentencing.
Barron also co-authored a decision overruling Stearns' decision to withhold, at least temporarily, the names of the jurors who ruled on Chin's case.
The appeals court panel is scheduled to hear arguments from Chin and Cadden's lawyers and federal prosecutors at 9:30 a.m. Tuesday in federal court in Boston, Mass.
Contact: wfrochejr999@gmail.com

Deal on Cadden House

By Walter F. Roche Jr.

A buyer has apparently been found for the 9,000 square foot home of a jailed former drug company executive and the price is about half of the original asking price.
The listing for the Wrentham, Mass. home of Barry J. Cadden states that it is "under contract." The property is subject to a federal court forfeiture order and half of the proceeds will go to the federal government.
The five bedroom house was originally listed for just under $3 million but the price has been cut several times with $1.5 million the latest asking price. It has been on the market for 303 days.
Exact details of any sale won't be known until a deed is recorded at the Norfolk County Registry of Deeds.
Cadden headed the New England Compounding Center, the company that federal regulators say caused a deadly fungal meningitis outbreak. More than 100 patients injected with an NECC steroid have died and some 800 have been injured, some permanently.
Cadden was convicted of racketeering, conspiracy and mail fraud and was sentenced to nine years in prison. He is currently an inmate at a federal prison in Loretto, Pa. His scheduled release date is June 6, 2025.
Under a forfeiture order approved by U.S. District Judge Richard G. Stearns, bank accounts, jewelry and real estate assets held by Cadden were ordered to be sold or turned over to the federal government.
Cadden was allowed to keep a second home along the Rhode Island coast under a compromise forfeiture order negotiated with federal prosecutors.
U.S. Justice Department lawyers have expressed hopes that some of the Cadden assets could go to victims, but Stearns has ruled that those sickened by NECC steroids don't qualify as victims under federal law.
Contact: wfrochejr999@gmail.com

Cadden, Chin Appeals Due for Hearing

By Walter F. Roche Jr.

Federal prosecutors say a judge was wrong when he ruled that victims of the 2012 fungal meningitis outbreak did not qualify as victims under federal law thus making them ineligible for some $80 million in restitution.
In a 20-page brief filed in advance of a Nov. 5 hearing before the 1st Circuit Court of Appeals government attorneys are asking for the restitution order to be imposed and for the sentence against a key figure in the outbreak to be increased.
The hearing will consider appeals and cross appeals stemming from the convictions of Barry J. Cadden and Glenn Chin, both connected to the now defunct New England Compounding Center, the company that caused the deadly outbreak.
The brief filed by Assistant U.S. Attorneys Amanda Strachan and George Varghese, also disputes the conclusion by U.S. District Judge Richard G. Stearns, that only a small portion of NECC's income could be considered in assessing the severity of the defendants crimes.
"NECC's gross sales reflect the proper loss calculation," the prosecution brief states.
Ironically briefs filed by lawyers for Cadden and Chin defend and support many of Stearns findings during their two separate trials.
Cadden was sentenced to a nine year prison sentence while Chin drew an eight year term. Both were convicted of racketeering, conspiracy and mail fraud charges but cleared on 25 counts of second degree murder. Both are now serving their sentences in separate federal prisons in Pennsylvania.
In a 59-page filing Chin's lawyer, James L. Sultan, argued that the government failed to provide sufficient evidence to justify a guilty verdict on the racketeering and conspiracy charges.
"The government failed to prove open ended continuity," the brief states, adding the government attorneys "cherry-picked evidence."
The brief contends that for most of its history NECC was a legitimate business and its customers were "generally satisfied. It made no sense for NECC to ship drugs it knew to be contaminated."
As for the eight year sentence, Chin's lawyer again sided with Stearns.
"The sentencing judge did not err and Chin's substantial sentence should be affirmed," the brief states.
The prosecution's 20-page brief argues that Cadden's nine year sentence should be increased because of the large number of victims and because Cadden's actions "created a risk that others would suffer serious bodily injury."
"A direct causal link runs from Cadden's conduct to the patients' injuries," the filing states, adding that Cadden's racketeering caused the patients'harm.
The brief faults Stearns for declining to increase the sentence.
"It (the court) held that the patients who received and were killed or injured by NECC medication were not victims of Cadden's racketeering and mail fraud offenses. But the district court got the standard wrong," the brief states, adding that a vulnerable victims enhancement was justified.
Cadden, like Chin had argued that the majority of NECC's customers got safe drugs and were satisfied, but prosecutors said that was not the case and Cadden and NECC openly flouted industry standards.
"Cadden knew or should have known the patients were vulnerable to serious illness or death," the filing states.
The prosecutors also faulted Stearns for failing to take into account some $5.7 million in NECC profits that were paid to Cadden's wife, a part owner of NECC.
They noted that the $5.7 million was deposited into a joint account of the Caddens. The court excluded the $5.7 million because Lisa Cadden was not charged with any crimes.
The Nov. 5 hearing is scheduled for 9:30 a.m. on the 7th floor of the federal courthouse in Boston.
Contact: wfrochejr999@gmail.com

Chin, Thomas Face December Sentencing

By Walter F. Roche Jr.

The final two defendants in the criminal case stemming from a deadly fungal meningitis outbreak will face sentencing in early December.
Kathy Chin and Michelle Thomas were found guilty of multiple violations of the Food Drug and Cosmetic on May 2 and this week the two had their motions for acquittal or a new trial turned down in a 10-page ruling by U.S. District Judge Richard G. Stearns.
Thomas is scheduled for sentencing on Dec. 17 at 10 a.m. in Stearns' Boston, Mass. courtroom. Chin faces sentencing exactly 48 hours later.
Thomas was found guilty on two counts of violations of the FDCA while Chin was found guilty on four counts. Jurors found that the two also approved the prescriptions with the intent to defraud or deceive. They were both employed at the New England Compounding Center, the company blamed for the deadly outbreak.
Evidence presented at their four day Spring trial showed they routinely verified prescriptions for obviously fictitious patients including Flash Gordon, Chester Cheeto, Filet O' Fish and Coco Puff.
Prosecutors have yet to recommend sentences for the two, but a co-defendant, Alla Stepanets, got one year of probation following her conviction on six violations of the FDCA. She could have faced up to a year in prison.
Kathy Chin is the wife of Glenn Chin who already is serving an eight year federal prison sentence for his role as a supervising pharmacist at NECC.
Two other NECC defendants are currently serving time in federal prisons. NECC part owner and president Barry J. Cadden is serving a nine-year sentence. Like Chin he was convicted of racketeering, conspiracy and mail fraud charges.
Gene Svirskiy, a former NECC pharmacist, is serving a 30 month sentence following conviction on racketeering, conspiracy and mail fraud charges. Christopher Leary,who was convicted on mail fraud charges and violations of the FDCA, was sentenced to eight months of home confinement and two years of probation

Two NECC Appeals Denied

By Walter F. Roche Jr.

A federal judge Thursday turned down the appeals of two pharmacists charged with violating a federal law when they routinely approved prescriptions made out for obviously fictitious patients including Filet O Fish.
In a 10-page ruling issued in U.S. District Court in Boston, U.S. District Judge Richard G. Stearns said he had no choice but to reject the primary argument raised for defendants Kathy S. Chin and Michelle L. Thomas, because the 1st Circuit Court of Appeals already ruled against the same argument raised by the same defendants.
"Because a 1st Circuit decision on a point of law is controlling in this circuit, I am bound to obey it," Stearns wrote, adding that he still felt prosecutors should be required to show the defendants deliberately abused their positions as licensed pharmacists.
The two defendants were among 14 affiliated with the New England Compounding Center indicted following a two year probe of the deadly 2012 fungal meningitis outbreak.
Chin was convicted for four violations of the Food Drug and Cosmetic Act while Thomas was convicted for two. Both were also charged by jurors with committing the acts with the intent to defraud or deceive.
Lawyers for Chin and Thomas had argued that their clients were not acting as pharmacists but merely as clerks checking to see that the right medication was going to the right address.
In reversing their earlier acquittal by Stearns for the same two defendants, the 1st Circuit ruled that under Massachusetts and federal law Chin and Thomas were in fact acting as pharmacists and were bound to ensure that the drugs they dispensed were going to real patients.
Stearns added that it was still possible that the appeals court would choose to revisit the issue on further appeal.
Nonetheless, Stearns added, "I believe that the government should be held to a higher standard of proof under the felony branch of the crime."
Stearns was particularly sympathetic to Thomas stating that her case falls into the "no good deed goes unpunished" category. He noted testimony that Thomas had twice raised questions about the obviously fake names with her superiors including Barry Cadden, the president and part owner of NECC. She was told not to worry about it.
But Stearns agreed with federal prosecutors that "the patently fictitious names should have been an obvious red flag..to the illegal and fraudulent conduct taking place at NECC."
Stearns was much less sympathetic to the Chin and Thomas argument that they had been unduly prejudiced when they were tried separately from other NECC defendants who were charged with far greater crimes.
Noting that their trial was separated at their own requests, Stearns wrote, "Their late blooming complaint of having gotten what they wished for does not sit well."
The judge also denied the defendants motion for a new trial.
He added that in his own view, "The government did not guild the lilly in this case but stayed admirably within the Goldilock's standard."
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Another Compounding Recall

Innoveix Pharmaceuticals, Inc. Issues Voluntary Recall of all Sterile Compounded Drug Products Due to a Lack of Sterility Assurance
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9:44 AM (7 hours ago)




Innoveix Pharmaceuticals, Inc. Issues Voluntary Recall of all Sterile Compounded Drug Products Due to a Lack of Sterility Assurance
Innoveix Pharmaceuticals, Inc. is voluntarily recalling all sterile compounded drug products, within expiry, to the consumer level. The products are being recalled due to a lack of assurance of sterility. These concerns arose following a routine inspection of the pharmacy by FDA.

Administration of a drug product intended to be sterile, that is not sterile, could result in serious infections which may be life-threatening. To date, Innoveix Pharmaceuticals, Inc. has not received any reports of adverse events related to this recall. This voluntary recall is being conducted out of an abundance of caution and to promote patient safety, which is the pharmacy's highest priority.

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Cadden, Chin Must Attend Hearing

By Walter F. Roche Jr.

A Michigan judge has ruled that two former pharmacists facing second degree murder charges must attend November hearings during which prosecutors will present testimony to be used in an upcoming trial.
District Court Judge Shauna Murphy made the ruling Tuesday following arguments by attorneys for Glenn Chin and Barry Cadden. The two have been charged with 11 counts of second degree murder due to their roles in the 2012 fungal meningitis outbreak. The arguments were presented in Livingston District Court in Howell.
James Buttrey, Chin's lawyer, and Gerald Gleeson II, Cadden's attorney,had asked Murphy to allow their clients to forego the preliminary examination sessions scheduled for Nov. 14 and 15.
Gregory Townsend, an assistant state Attorney General, had argued that the two defendants should be required to attend the sessions because testimony about the case will be presented. He said he could not recall any case in which defendants facing second degree murder charges were allowed to skip a preliminary examination.
Those expected to testify include Michigan victims of the outbreak and the survivors of those who died.
Under Michigan law at a preliminary examination hearing the prosecution has to show that a crime has occurred and it is more likely than not that the defendants committed the crimes.
Murphy said that while it may be inconvenient for the two to travel to Michigan the preliminary examination is a crucial part of the proceedings, according to Donna Borton, the spouse of a victim, who attended the Tuesday session.
Cadden and Chin are already serving time in federal prisons in Pennsylvania following their conviction on racketeering, conspiracy and mail fraud charges. Chin is serving an eight year sentence at the federal prison in Allenwood, while Cadden is serving a nine year sentence at the federal prison in Loretto.
The two were cleared in two separate federal trials of second degree murder racketeering charges.
Cadden was president and part owner of the New England Compounding Center, the company that produced the contaminated drugs that caused the outbreak. Chin was a supervising pharmacist at NECC.
Buttrey and Gleeson had argued that the long bus ride would be a hardship for their clients and that their attendance was not crucial. Gleeson noted that Cadden's identity was not in dispute.
In addition to the two days of testimony scheduled for November an additional two days are scheduled for Dec. 10 and 11.
Contact: wfrochejr999@gmail.com

NECC Prosecutor Joins Law Firm

One of the prosecutors in the criminal case stemming from a nationwide fungal meningitis outbreak is leaving his position to join a law firm.
George Varghese, an assistant U.S. Attorney who has served the U.S. Justice Department in Boston and Washington, D.C. is joining the Boston office of WilmerHale, which specializes in defense work in white collar crimes.
Along with Assistant U.S. Attorney Amanda Strachan, Varghese handled the criminal cases of 14 people charged in the wake of the 2012 fungal meningitis outbreak. Eleven of the 14 indicted have been convicted of crimes ranging from racketeering to conspiracy and mail fraud.
All of the defendants were connected to the New England Compounding Center, the company blamed for the outbreak. Of some 800 outbreak victims, over 100 have died.
“It took up the last seven years of my career,” Varghese said of the NECC case. “When I finished with that, I felt like it was time to work on something new."
Varghese has worked as a federal prosecutor for over a decade. In addition to the NECC case Varghese worked on cases including thee investigation of the Boston Marathon bombing and the conviction of a participant in the 1994 Rwandan genocide.'

Michigan Hearing on Chin, Cadden Charges

By Walter F. Roche Jr.

A Livingston County judge will hear arguments Tuesday on whether two former Massachusetts pharmacists, must attend a November hearing on the multiple murder charges they are facing.
Lawyers for Barry Cadden and Glenn Chin have stated that their clients will waive their right to be in attendance at a preliminary examination scheduled for Nov. 14 and 15. Michigan's Attorney General, Dana Nessel, however, says the two defendants should be there.
"We are opposing it, we believe that both defendants should be present when we start taking testimony," said Kelly Rossman McKinney, spokeswoman for Nessel.
Chin and Cadden have been charged with 11 counts of second degree murder due to their roles in the 2012 fungal meningitis outbreak that took the lives of dozens of patients among some 800 who were sickened.
Cadden and Chin, who already are serving federal prison sentences for their roles in the outbreak, were charged with second degree murder late last year by then Michigan Attorney General Bill Schuette.
It will be up to Livingston County Judge Shauna Murphy to decide whether the two must be present. The Tuesday hearing is scheduled for 9 a.m. at the Livingston County District Court in Howell.
Under Michigan law at a preliminary examination hearing the prosecution has to show that a crime has occurred and it is more likely than not that the criminal defendants committed the crimes.
Chin and Cadden were also charged with second degree murder in the federal case, but two separate juries cleared them of those charges. The two were convicted however on racketeering, conspiracy and mail fraud charges. Cadden was president and part owner of the New England Compounding Center, the company blamed for the outbreak. Chin was a supervising pharmacist at NECC.
Cadden is serving a nine year federal prison sentence, while Chin is serving an eight year sentence. The two were among 14 indicted in 2014 following a two year grand jury probe of the outbreak.
Families of the Michigan are expected to attend.
Rossman-McKinney said the prosecutors plan to take testimony from Michigan witnesses on Nov. 14 and 15. Out-of-state witnesses are expected to testify on Dec. 10 and 11. Rossman-McKinney said additional sessions will likely be needed in December.

Seven Years Later and Still Hurting

By Walter F. Roche Jr.

"I am not going to get any better really. I just hope things do not get too much worse."
That's how Randy Dollyhigh,a North Carolina victim of the 2012 fungal meningitis outbreak put it when asked about his condition seven years after the deadly outbreak became public.
It was early in October of 2012 when the public first learned that a deadly outbreak had surfaced in Nashville. Soon it became clear that it was not limited to Tennessee. Soon after that state and federal health officials were able to trace the problem back to a rogue Massachusetts drug compounding firm.
Thousands of vials of a steroid, methylprednisolone acetate, laden with deadly fungi, had been shipped from Framingham, Mass. to health providers in more than 20 states. The deadly doses were then injected into the spines and joints of unsuspecting patients seeking relief from chronic pain.
Over 100 of the more than 800 victims have died, but for many of those that have survived, life has been no picnic.
Like Dollyhigh many of the victims complain of chronic bouts of severe pain that come suddenly and without warning.
He described some of those as "like being hit in the head with a club or a bat. The worst ones are in the head."
Dollyhigh, who says he had "a fantastic memory" before the outbreak, now cannot remember "names or simple things."
"One of the biggest problems after meningitis is that I cannot understand people very well," said Joan Peay of Nashville, Tenn., who suffered not just one but two separate bouts of fungal meningitis.
"I can hear volume, but have great difficulty understanding people.I often feel left out of conversations," Peay added
Peay, like Dollyhigh and other victims,says she suffers from recurring sharp pains in the back and neck.
"I sometimes get a cramp so bad I could pass out," Peay said.
"The disease seems to have aged me ten years. I just do not have much energy since then," Peay added.
Peay also reports having "a constant sound in my ears—like a very distant field of crickets or very light TV static. It is very annoying."
Many victims say it was not only the after effects of fungal meningitis that still sickens them but also the debilitating anti-fungal medications needed to treat the disease.
In fact Jack Pavlekovich, an Indiana victim, said his doctor told him that his current health problems stem more from the anti-fungal medications than from the initial bout of fungal meningitis.
A former police officer Pavlekovich said he needs to use a walker even when he is in his house. Like several other victims he said he has lost short term memory and suffers from sharp severe pains.
"I'll be watching tv and when the pain hits I'll actually jump out of my chair." he said.
Ken Borton, a Michigan victim, is still suffering from sudden, intense headaches that he gets treatments for every three months.
His wife Donna says he also continues to have "memory loss and seems to have no sense of time. He has no idea if he has been doing something for an hour, or three hours or more. He just keeps going and does not realize that he needs to stop and rest."
Dawn Elliott, an Indiana victim, says after effects of the fungal meningitis and the anti-fungal medications have left her hesitant to leave her home.
"This pretty much keeps me at home, afraid to go anywhere," Elliott said citing back and joint pains, bowel problems and multiple infections.
"I’ve been hurting quite a bit," Elliott said. "I am sick of this."

$15 million in Grant Funds to be Returned

By Walter F. Roche Jr.

Some $15 million or nearly a quarter of a $40 million grant earmarked for victims of the 2012 fungal meningitis outbreak will be returned to the federal government in the next few days when the final deadline for claims passes.
Officials of the Massachusetts Attorney General's office, which has been administering the program say the unused money must be returned on Sept. 30, the end of the federal fiscal year. The grant came from a U.S. Justice Department program to benefit crime victims.
The Massachusetts program was established to assist patients who were sickened by contaminated drugs produced by the New England Compounding Center of Framingham, Mass. The 2012 outbreak sickened hundreds and over 100 have died.
According to data from Attorney General Maura Healey's office some $23 million has been distributed to some 640 victims while 103 claims have been denied. The number of denied claims is likely to rise during the last few days of the program.
Some twenty victims have had claims approved since July, apparently as a result of a final outreach effort to contact all possible victims.
Under the program eligible victims qualified for an initial grant of $25,000. An additional $25,000 was available to survivors of those who died in the outbreak and those who suffered a permanent disability.
A federal criminal probe of NECC resulted in the 2014 indictment of 14 people with ties to NECC. Three of the 14 are now serving federal prison sentences.
Michigan, Tennessee and Virginia were among the hardest hit in the 2012 outbreak.
Contact: wfrochejr999@gmail.com

NECC RXs Plead for Acquittal

By Walter F. Roche Jr.

Boston- Two pharmacists facing potentially lengthy jail terms told a federal judge that it wasn't their job to question the patently fake names on prescriptions they routinely processed for shipment.
Lawyers for Kathy Chin and Michelle Thomas said their clients, both licensed pharmacists, were only assigned to ensure that the right drugs were being shipped to the correct medical facility.
The two are appealing their May conviction on violations of the Food Drug and Cosmetic Act with intent to defraud or deceive.
While not disputing that prescriptions were processed for the likes of Charlie Cheeto and Filet O Fish, Chin's lawyer, Joan Griffin, said prosecutors had presented no evidence that the defendants had intended to defraud or deceive anyone.
"There's no way anyone could think they were legitimate," Assistant U.S. Attorney Amanda Strachan countered, recounting the testimony of an official of the Massachusetts Pharmacy Board, who said during the Spring trial that state law required pharmacists to verify that each prescription was being dispensed to a specific patient.
Chin and Thomas were employees of the New England Compounding Center, the long defunct Massachusetts company blamed for a deadly 2012 fungal meningitis outbreak caused by deadly fungi in drugs that were supposed to be sterile.
But Chin and Thomas were not charged with any role in producing the deadly steroids but rather for routinely clearing drugs for shipment prescription drugs being prescribed for obviously fake named patients.
Griffin and Michael C. Bourbeau, Thomas' lawyer, both insisted that their clients weren't verifying the names of patients but simply verifying the right drugs were being shipped to the right physicians or medical facilities.
U.S. District Judge Richard G. Stearns questioned Strachan about the trial testimony that NECC had a separate verification department that checked legitimacy of the orders before they were sent to Chin and Thomas.
Strachan responded noting that the trial evidence showed the verification unit did not include a licensed pharmacist and state law required that a pharmacist do the verification.
Chin and Thomas, Strachan said, were the ones putting their signatures on NECC's verification forms.
"The law could not be more clear. There had to be a patient specific prescription," she stated.
Stearns, however, questioned whether NECC was operating in a gray area, in which neither state or federal regulators had clear authority.
Strachan countered by noting the trial testimony of Janet Woodcock, a top FDA official, who said that had the FDA known NECC was mass producing drugs without valid prescriptions there was no doubt they should have been subject to FDA regulation.
Throughout the session prosecutors and defense attorneys cited prior rulings by Stearns as favoring their opposing positions. The case is the fourth heard by Stearns stemming from the 2014 grand jury indictment of 14 people connected to NECC. In the most recent ruling Stearns overturned jury guilty verdicts on Gregory Conigliaro and Sharon Carter. Conigliaro was a vice president and part owner of the company..
Three of the 14 are currently serving jail terms following conviction on racketeering and mail fraud charges. That includes Glenn Chin, the husband of Kathy Chin, who is serving an eight year sentence.

Chin, Thomas Appeal Hearing Set

By Walter F. Roche Jr.

Two former pharmacists will go before a federal judge this week and ask him to do the same thing he did with two of their co-defendants, overturn unanimous guilty jury verdicts and acquit them of all charges.
Kathy Chin, 47, and Michelle Thomas, 35, were convicted in May of violations of the Food Drug and Cosmetic Act following a four day trial. They were among 14 indicted in 2014 following a two year probe of the deadly 2012 fungal meningitis outbreak.
U.S. District Judge Richard G. Stearns, who will hear the acquittal arguments Friday, already has granted acquittal motions to Gregory Conigliaro and Sharon Carter.
As an alternative to acquittal Chin and Thomas also asked for a new trial, contending that much of the evidence presented at the trial involved wrongdoing by other parties.
Carter, Conigliaro, Chin and Thomas were all employed by the New England Compounding Center, the defunct company blamed for the outbreak.
Chin's lawyer, Joan Griffin, has argued that her client was convicted of not doing something that wasn't even part of her job. In her acquittal motion, Griffin said Chin simply checked to see that the drugs already compounded by other NECC employees matched up with the orders placed with the company and were being sent to the correct address
"The fact that she happens to be a pharmacist does not make Ms. Chin responsible for the actions or in-actions of the corporation," Griffin wrote.
Federal prosecutors, however, point to prescriptions processed by Chin and Thomas with obviously fictitious names like Filet O Fish, Rug Doctor and Chester Cheeto. The acquittal motions are flawed and without merit and simply repeat arguments already rejected by the judge and the jury, the prosecutors contend.
The filings by Assistant U.S. Attorneys George Varghese and Amanda Strachan charge that Thomas and Chin played indispensable roles in NECC's fraudulent schemes. They also noted jurors found that the two acted with intent to defraud and deceit.
Stearns earlier acquitted both Thomas and Chin of some of the charges, but his ruling was reversed and the charges reinstated by an appeals court.
Last week Stearns re-set sentencing hearings for the two defendants. Chin's session is set for Oct. 17 and Thomas for the next day. Previously he canceled the original August sentencing dates.
Chin was convicted of four counts of violating the Food Drug and Cosmetic Act while Thomas was convicted of two counts.
Chin is the wife of Glenn Chin, who was a supervising pharmacist at NECC.
Glenn Chin was convicted of racketeering, conspiracy and mail fraud in 2017 and is serving an eight year sentence at a federal prison in Pennsylvania.
Two other NECC defendants are also in federal custody following their conviction on charges stemming from the 20114 indictment.
NECC president and part owner Barry J. Cadden is serving a nine year sentence on racketeering and mail fraud charges while Gene Svirskiy is serving a 2.5 year sentence on racketeering and mail fraud charges.
Contact: wfrochejr999@gmail.com

Additional Hearing Dates Set

By Walter F. Roche Jr.

Two additional preliminary hearing dates have been set in the second degree murder cases against two former Massachusetts pharmacists.
In a scheduling conference yesterday in Livingston District Court in Howell Michigan, prosecutors and defense attorneys agreed to a total of four days for a preliminary examination in the case against Barry J. Cadden and Glenn Chin.
The hearing dates are Nov. 14 and 15 and Dec. 10 and 11. The November dates had been set previously.
The two defendants were not present and may also waive their right to attend the four preliminary examination sessions.
The two were charged with 11 counts of second degree murder for their roles in the 2012 fungal meningitis outbreak. The 11 victims died in the outbreak after being injected with fungus infested drugs manufactured by the New England Compounding Center.
Cadden was president and part owner of NECC and Chin was a supervising pharmacist.
Chin and Cadden already are serving federal prison sentences following their conviction on racketeering, conspiracy and mail fraud charges.
Contact: wfrochejr999@gmail.com

Cadden, Chin Hearing in Michigan

By Walter F. Roche Jr.

Eleven second degree murder charges lodged against two former Massachusetts pharmacists will be the subject of a hearing next week before a Michigan judge who must determine whether there is probable cause to believe they committed the crimes.
The two defendants, Barry J. Cadden and Glenn Chin, will not be in attendance however, according to a spokeswoman for Michigan Attorney General Dana Nessel. The hearing will be held in Livingston District Court in Howell. The session begins at 8 a.m on Tuesday.
Cadden and Chin already are serving federal prison sentences for their roles at the New England Compounding Center, the company blamed for a deadly 2012 fungal meningitis outbreak. They were both convicted of racketeering, conspiracy and mail fraud charges as a result of a two year probe of the outbreak.
Kelly Rossman-McKinney, the spokeswoman for Nessel, said the two defendants waived their rights to attend the upcoming probable cause session, but they are expected to attend two days of hearings on the murder charges beginning on Nov. 14.
Cadden was president and part owner of the New England Compounding Center, while Chin was a supervising pharmacist at the Framingham, Mass. company.
Under Michigan law the judge must decide if facts asserted by the attorney general are sufficient to cause a fair minded person of average intelligence to believe the defendants committed the crimes alleged.
Cadden and Chin were also charged with second degree murder in the federal case but two separate juries cleared them of those charges. Both are serving sentences at federal prisons in Pennsylvania. Cadden is serving a nine year sentence while Chin's sentence is eight years.
Chin and Cadden were brought to Michigan for a hearing in June.
Contact: wfrochejr999@gmail.com

Cadden House Price Drops Again

By Walter F. Roche Jr.

The asking price on the mansion owned by a jailed former drug executive has dropped for the second time in recent months with the new price tag nearly $1.5 million below the original.
Real estate listings for the home of Barry J. Cadden, located in suburban Boston, show a new sales price of $1.5 million, compared to the original price of nearly $3 million. The house has been on the market for 238 days.
Cadden is serving a nine year prison sentence following his conviction on racketeering, conspiracy and mail fraud charges. His 9,000 square foot home is subject to a forfeiture order and half the proceeds will go to the federal government. The new lower price was set earlier this week.
Cadden was president and part owner of the New England Compounding Center, the Framingham, Mass. firm that caused a deadly 2012 fungal meningitis outbreak.
Featuring a pool and a five car garage, the property is described as a "magnificent estate" with a salt water pool, 5 bedrooms and a five car garage.
Prosecutors also sought $74 million in restitution from Cadden, but that motion has been put on hold by U.S. District Judge Richard G. Stearns.
The forfeiture order was initially $7.5 million but it was reduced substantially under a negotiated settlement between lawyers for the Cadden family and prosecutors.
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Judge Sets Appeal Date

By Walter F. Roche Jr,

A federal judge has set a Sept. 20 hearing date for appeals filed by two former employees of a drug compounding company blamed for a deadly 2012 fungal meningitis outbreak.
In an order filed this week U.S. District Judge Richard G. Stearns set the date for the appeals filed by Kathy Chin, 47, and Michelle Thomas, 35. The two were convicted on charges that they violated the Food Drug and Cosmetic Act, when they filled prescriptions made out for obviously fictitious patients.
Previously Stearns postponed indefinitely a sentencing session for the two, who were employed as pharmacists at the now defunct New England Compounding Center.
Chin was convicted on four counts of misbranding a drug with the intent to defraud while Thomas was found guilty of two counts of the same charges. The unanimous guilty verdicts were returned on May 2 after only two hours of deliberation.
Chin and Thomas were not charged for any involvement in producing the drugs that caused the outbreak but for filling prescriptions made out to obviously fake named patients, such as Filet O Fish.
Chin and Thomas were convicted on May 2. They were among 14 former NECC employees indicted following a two year probe of the outbreak.
The jury deliberated for only two hours before returning the unanimous verdicts.
Stearns already has granted appeals for two other NECC defendants, Gregory Conigliaro and Sharon Carter. They were both acquitted on all charges despite unanimous jury verdicts finding them guilty.
Kathy Chin is the wife of Glenn Chin, who was a supervising pharmacist at NECC. He is serving an eight year prison term following his conviction on racketeering, conspiracy and mail fraud charges.
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Cadden Coastal Property Sold to Trust

By Walter F. Roche Jr.

The deed on a valuable coastal home owned by a jailed drug compounding executive and once the subject of a $7.5 million forfeiture order has been transferred to a real estate trust headed by one of the executive's sons.
Property records in Rhode Island show the home at 25 Newport Ave. in North Kingston was transferred from Barry J. Cadden and his wife to the Mele Nominee Trust with Matthew Cadden as the trustee. Matthew Cadden has been identified in court filings as Barry Cadden's son.
The deed transfer was filed on April 25 of this year, according to the North Kingston Assessor's office.
A forfeiture order filed in Barry Cadden's criminal case listed the Rhode Island vacation home as one of the assets federal prosecutors sought to seize. Cadden is serving a nine year federal prison sentence following his conviction on racketeering, conspiracy and mail fraud charges.
In a negotiated settlement of the forfeiture order, federal prosecutors agreed to allow the Caddens to retain the Rhode Island property in exchange for a payment of $369,000.
The home was purchased by the Caddens in 2009 for $785,000. It is currently assessed for $663,100.
Other properties covered in the forfeiture settlement include a home in Wrentham, Mass. which is currently on sale for $1.8 million. Half the proceeds from the sale of that property and two adjacent lots will go to the federal government.
Prosecutors also seized bank and investment accounts and a boat.
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Cadden House Price Drops

By Walter F. Roche Jr.

The asking price on the home of jailed ex-pharmacist Barry J. Cadden has dropped from $2 million to $1.8 million, according to recent real estate listings in Massachusetts.
The new asking price is some $1 million below the original price of nearly $3 million.
Proceeds from the sale of the 9,000 square foot home in Wrentham, Mass. is the subject of a forfeiture order imposed following Cadden's conviction on racketeering, conspiracy and mail fraud charges.
Cadden is currently serving a nine year jail sentence at a federal prison in Pennsylvania. The charges stem from a two year probe of the deadly 2012 fungal meningitis outbreak caused by contaminated drugs produced at a drug compounding firm where Cadden served as president and part owner.
The property located at 13 Manchester Drive in the Boston suburb of Wrentham has five bedrooms, 5.5 baths a two acre lot and a salt water heated gunnite pool.
Federal prosecutors initially sought a $7.5 million forfeiture order which included the contents of several bank and investment accounts, along with jewelry, a Rhode Island seaside home, a boat and Cadden's BMW.
Lawyers for the Caddens and federal prosecutors subsequently reached a negotiated agreement in October of 2018 which allowed the Caddens to retain the Rhode Island property in exchange for a $369,000 payment. The revised order generally granted half the value of jointly owned properties to Cadden's wife Lisa.
Prosecutors have also sought $74 million more in restitution from Cadden and others involved in the New England Compounding Center, but U.S. District Judge Richard G. Stearns put that request on hold pending the completion of cases against other defendants.
According to the real estate listings, the Cadden's Wrentham residence has been on the market for 225 days. It was built in 2008.
Prosecutors have expressed hopes that restitution funds be earmarked for victims of the outbreak.
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Hospital Refused State Record Request

By Walter F. Roche Jr.

When state surveyors showed up at a rural Pennsylvania hospital and asked to look at patient safety and related records they were told they couldn't have them because the records were "confidential and protected."
In fact on three successive days in early June the state surveyors got the same response from officials of the Guthrie Towanda Memorial Hospital. On the next try they were given records but with large sections blacked out.
Left unreadable were sections of the minutes covering discussions and conclusions.
The confrontation earned the 35-bed hospital a citation for failing to comply with state licensing requirements.
"The facility was not able to provide this information because the information was considered confidential and protected," the inspection report states.
The records requested were meeting minutes for committees the hospital is required to maintain for patient safety, performance improvement and infection control.
Subsequently the hospital, located in Towanda, filed a plan of correction in which they promised to provide unredacted copies of the requested minutes by July 30.
The hospital was also cited for installing new imaging equipment without first notifying the state.

Indiana Outbreak Cases Back to Square One

By Walter F. Roche Jr.

Two Indiana courts have ruled that malpractice claims by victims of a deadly 2012 outbreak must first have their cases screened by a panel of doctors before they can pursue them in a courtroom.
The decisions in superior courts in Elkhart and Saint Joseph County mean that more than 100 cases will need to be reviewed one by one by a panel of three physicians.
Calling it a "minor setback," Douglas Small, whose law firm represents some 80 victims, said the courts rejected, at least for the moment, the argument that two Indiana clinics engaged in negligence or malpractice as a matter of law.
The decision comes some seven years after the fungal meningitis outbreak surfaced. Indiana was one of some 20 states where victims were stricken with fungal meningitis caused by steroids contaminated with deadly fungi. There were 93 victims in Indiana, according to the latest available data.
Small wrote in an email response to questions that victims' attorneys had argued that the clinics, including ASC Surgical Ventures and Orthopedic and Sports Medicine Center, failed to comply with the mandated state and federal procedures for use of prescription drugs when they purchased and dispensed the tainted steroids.
For instance, he said, they failed to comply with "the requirement that an individual prescription be issued for each patient for each drug obtained from a pharmacy."
That failure, he added, assisted the New England Compounding Center, which produced the drugs, to sell drugs in bulk, but still avoid stricter federal regulations.
He said each case will now be brought before a three physician panel to determine whether the clinics deviated from the standard of care.
Following that, the cases will then be brought back to court where Small said he will once again argue that the clinics were guilty of negligence as a matter of law.
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Douglas and Carla Conigliaro's Beacon Hill Condo

Condo Purchased Just Before Outbreak

Purchased April 2012 for $4,195,000 Current Value $7,469,128

(Place this url in your address line)
https://www.redfin.com/MA/Boston/128-Beacon-St-02116/unit-L/home/11838633

Wednesday, November 9, 2016
Conigliaros Get Fines and Probation


By Walter F. Roche Jr.

A federal judge today sentenced the majority owner of a defunct drug compounding firm blamed for a deadly fungal meningitis outbreak to one year of probation and a $4,500 fine
The sentence was imposed by U.S. District Judge Richard Stearns against Carla Conigliaro, 53, of Dedham, Mass. the majority owner of the New England Compounding Center.
Her husband, Douglas Conigliaro, 55, who headed a related sale company, was sentenced to two years probation and a $55,000 fine.
The sentences were the same as recommended by federal prosecutors under a plea agreement in which they entered guilty pleas to violating a federal law requiring that bank withdrawals in excess of $10,000 be reported to the federal government.
They admitted to structuring withdrawals under $10,000 from bank accounts to avoid triggering the reporting requirement.
Under the plea deal Carla Conigliaro pleaded guilty to violating the structuring law with withdrawals totaling $4,600.75 while her husband admitted to $119,647 in structured withdrawals.
As part of that agreement federal prosecutors agreed to drop several additional structuring charges.
Though she was the majority shareholder and a board member, prosecutors said she was not involved in the day-to-day operations of NECC.
NECC has been blamed for the 2012 fungal meningitis outbreak that sickened 778 patients across the country, killing at least 77 of them.
The company shipped thousands of vials of fungus riddled methylprednisolone acetate to health providers across the country.
Another NECC owner, Barry Cadden, and a top company pharmacist, Glen Chin, are scheduled to go on trial on Jan. 5 on second degree murder charges. Others indicted following a federal grand jury probe of the outbreak, are scheduled for trial in April on lesser charges.
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Posted by meningitis-etc.blogspot.com at 2:18 PM



Pharmacopeia Case 1:14-cr-10363-RGS *SEALED* Document 1 Filed 12/16/14 Page 6 of 73 15. The defendant CARLA R. CONIGLIARO ("CARLA CONIGLIARO") was an individual residing in Winter Park, Florida and Dedham, Massachusetts. CARLA CONIGLIARO was the majority shareholder ofNECC, and served as a dir ector ofNECC.

16. The defendant DOUGLAS A. CONIGLIARO ("DOUG CONIGLIARO") was an individual residing in Winter Park, Florida and Dedham, Massachusetts. DOUG CONIGLIARO was the husband of CARLA CONIGLIARO. DOUG CONIGLIARO was an owner and director of MSM, and served as MSM's President.

Updated NECC Indictment Scorecard

Friday, May 3, 2019
Latest NECC Indictment Scorecard
Here are the names of those indicted in the probe of the New England Compounding Center and the current status of their cases.

Barry J. Cadden: convicted of racketeering, racketeering conspiracy, mail fraud and violations of the Food Drug and Cosmetic Act (FDC Act). (Cleared of second degree murder)Currently serving nine year federal prison sentence. Release date June 6, 2025.
Glenn Chin: found guilty of racketeering, racketeering conspiracy, mail fraud and violations of the FDCA. (Cleared of second degree murder) Serving an eight year federal prison sentence. Release date Feb. 26, 2025.
Gene Svirskiy: Convicted of racketeering, racketeering conspiracy, violations of the FDCA. Began serving 30 month sentence. Release date Aug. 26, 2021
Scott M. Connolly: entered guilty plea to nine counts of mail fraud. Sentenced to two years probation.
Sharon P. Carter: convicted of conspiracy to defraud the federal government. Acquitted on appeal.
Alla V. Stepanets: convicted of six violation of the FDCA. Sentenced to one year probation.
Gregory A. Conigliaro: convicted of conspiracy to defraud the U.S. Food and Drug Administration. Acquitted on appeal.
Robert A. Ronzio: entered guilty plea to conspiracy to defraud the FDA. Sentencing delayed indefinitely.
Christopher Leary: convicted of mail fraud and violations of the FDCA. Sentenced to eight months home confinement.
Kathy S. Chin: Convicted of four violations of the FDCA with intent to defraud. Sentencing delayed pending appeal.
Michelle L. Thomas: Convicted of two violations of the FDCA with intent to defraud. Sentencing delayed pending appeal.
Carla R. Conigliaro: Pleaded guilty to violations of financial transaction reporting laws. Sentenced to probation
Douglas A. Conigliaro Pleaded guilty to violations of financial transaction reporting laws. Sentenced to probation.
Joseph M. Evanosky: cleared of all charges.
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Sentencing Postponed for 2 NECC Defendants

By Walter F. Roche Jr.

A federal judge has postponed indefinitely the sentencing of two pharmacists convicted om charges stemming from a deadly 2012 fungal meningitis outbreak.
U.S. District Judge Richard G. Stearns today granted the postponement motion filed in behalf of Kathy Chin, 47, and Michelle L. Thomas, 35, both former employees of the New England Compounding Center, the company that caused the 2012 outbreak.
Chin and Thomas had been scheduled for sentencing on Aug. 8 and Aug. 9, but their attorneys had petitioned for a delay pending the results of an appeal of their convictions.
Chin was convicted on four counts of misbranding a drug with the intent to defraud while Thomas was found guilty of two counts of the same charges. The unanimous guilty verdicts were returned on May 2 after only two hours of deliberation.
Chin and Thomas were not charged for any involvement in producing the drugs that caused the outbreak but for filling prescriptions made out to obviously fake named patients, such as Filet O Fish.
The two were convicted in early May in U.S. District Court in Boston, Mass. They were among 14 indicted in late 2014 following a two year probe of the 2012 outbreak.
Three of the 14 originally indicted in the case have been acquitted of all charges while three others are now serving jail sentences.
Those currently serving jail terms include Glenn Chin, the husband of Kathy Chin. He is serving an eight year sentence following his conviction on racketeering, conspiracy and mail fraud charges.
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NECC RX Begins Jail Term

By Walter F. Roche Jr.

A former pharmacist at a drug compounding firm has begun serving a 30 month jail sentence following his conviction on racketeering and mail fraud charges.
Records of the federal Bureau of Prisons show Gene Svirskiy, 38, of Ashland, Mass is an inmate at FCI Devens in central Massachusetts.
Svirskiy was one of 14 indicted in 2014 following a two year federal probe of the deadly fungal meningitis outbreak. He was convicted late last year along with four other defendants connected to the now defunct New England Compounding Center.
Christopher Leary, 34, another NECC pharmacist, was sentenced at the same time as Svirskiy to eight months of home confinement.
Two other NECC defendants, Barry Cadden, 52, and Glenn Chin, 51, are serving sentences at federal prisons in Pennsylvania. Cadden was sentenced to nine years while Chin got an eight year sentence. They were also convicted on racketeering, conspiracy and mail fraud charges.
Cadden was president and part owner of NECC and Chinn was a supervising pharmacist at NECC.
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Outbreak Victims' Share Less Than 50%

By Walter F. Roche Jr.

Recent reports of millions of dollars going to victims of a 2012 fungal meningitis outbreak have left some of them scratching their heads.
In fact, interviews and reviews of settlement records show the victims of the deadly outbreak on average netted less than 50 percent of the amount originally allocated to them.
As some have discovered insurance companies, the Medicare and Medicaid programs along with other parties have come to claim a share of any award.
On top of that the attorneys representing the victims have taken shares ranging from one third to 40 percent.
In one case, records show, some $102,000 has been allocated as an Illinois victim's share but only about $44,000 has actually gone to the victim. Lawyers on the case collected a total of nearly $39,000 while about $12,500 went to reimburse the Medicare and Medicaid programs.
Finally nearly $7,000 went to costs of the litigation.
Other victims cite similar or worse numbers. A Tennessee victim said an award of $292,0373 was whittled down by some 55 percent to $130,152 with attorneys fees taking a one third fee and the health insurance company claiming another.
A Michigan victim said his attorney took one-third of his award as a fee, while his insurance company took another 18.6 percent.
Joan Peay, a victim who survived not one but two bouts of fungal meningitis, said she and other victims were surprised to learn about subrogation, a process that allows insurance carriers to recover some of the costs they incurred paying claims of a covered victim.
"Everyone is also extremely upset," Peay said, to find that the insurance companies get to recover some of their costs.
"We thought we had paid for insurance, not a reimbursement policy. We were the Victims, but ended up with less than 50 percent of the dollar amount awarded," Peay added, noting that she was quite pleased with the work done by her attorney.
Another victim noted that the only awards victims received that weren't reduced by attorney and insurance fees, were issued through a federal victims fund administered by the Massachusetts Attorney General.
Those grants, however, were generally capped at $25,000, although some qualified for $50,000.
Another victim echoed Peay stating that it made her angry that the insurance company got reimbursed from money awarded to her.
"No amount of money would be worth going through that experience and the after effects," Peay said referring to her two bouts of fungal meningitis.
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Request to Outbreak Victims

Hello:

I am trying to put together a story showing that even though the trustee reported $145 million has been distributed, the money didn't all go to the victims. Some went to Medicare or private insurers. I would like to get an idea of the percentages victims or their families actually got after all the deductions. One person I've been in contact with reported that some 42 per cent of her award was taken away. If you can give me some estimates of your individual cases I can put a story together. You can email me at wfrochejr999@gmail.com

Thank you,

Wally Roche

$145 Million OK'd for Outbreak Victims

By Walter F. Roche Jr.

A total of $145.6 million in settlement claims have been approved for payment to victims of a deadly 2012 fungal meningitis outbreak, according to a report filed today by a court appointed trustee.
The claims data was included in a 20-page annual report from Lynne F. Riley filed today in U.S. District Court in Boston, Mass.
The report covers most but not all of the amounts awarded to outbreak victims. Not included because they were administered separately are claims paid to more than 100 victims of the outbreak who were injected with fungus laden steroids at clinics in Tennessee.
According to Riley's report 2,353 claims were filed for payment from a national settlement fund and 2,027 were approved for payment. Actual payments have been made to 1,963. In fact all but seven of the 1,963 have received a second payment.
The total payout from the national fund is $96.6 million, according to the report.
In addition to the national settlement distributions totaling $48.9 million has been approved for payment to victims from settlements with clinics where those victims were injected with the tainted steroids.
Nineteen victims have been approved for payment from High Point Surgery, a North Carolina clinic. Forty seven claims have been approved for payment from a settlement with Inspira Health Network, based in New Jersey. Those payments total $12.1 million.
Claims filed by 181 victims have been approved from a settlement with Insight Imaging in Virginia. Those payments total $34.2 million, according to Riley's report.
Most but not all of the approved claims have actually been paid. For instance of the 181 approved claims against Insight, four have yet to be distributed because necessary paperwork has yet to be submitted.
Riley reported that attorneys for the approved claimants who still need to submit additional information have been reminded of that need.
Other items in the report include various expenses incurred during the 12 month period ending May 31 of this year. They include $41,898 in accounting fees and $17,318 paid to the Duane Morris law firm.
Riley reported that victims will also receive a third distribution sometime in 2020 or 2021. The exact amount will depend on tax refunds that are due to the owners of the New England Compounding Center, the company blamed for the 2012 outbreak.
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