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.
Contact: wfrochejr999@gmail.com

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.
Contact: wfrochejr999@gmail.com

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.
Contact: wfrochejr999@gmail.com

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.
Contact: wfrochejr999@gmail.com

Connolly Gets 2 Years Probation

By Walter F. Roche Jr.

A federal judge today sentenced a one time pharmacy technician to two years probation for his role at a now defunct drug compounding company that caused a deadly national outbreak of fungal meningitis.
U.S. District Judge Richard G. Stearns imposed the sentence on Scott Connolly in his Boston, Mass courtroom. Connolly had entered a guilty plea to 10 counts of mail fraud and could have faced a sentence of up to 33 months.
But Stearns followed the recommendation of federal prosecutors who stated that Connolly became a valuable prosecution witness and testified extensively against his former colleagues at the New England Compounding Center.
Connolly reached a plea agreement with the prosecution nearly a year ago under which they agreed to drop racketeering and related charges which could have brought a multi-year jail sentence.
The charges against Connolly stem from the fact that he was working as a pharmacy technician at NECC even though he had voluntarily surrendered his technician's certification as a result of a state investigation of unrelated charges.
Connolly was one of 14 people connected to NECC who were indicted following a two year probe of the 2012 fungal meningitis outbreak which sickened nearly 800 patients. Over 100 of them have died.
Connolly's attorney had argued for one year of probation, citing the assistance he provided to prosecutors.
While working for NECC, Connolly prepared dozens of vials of cardioplegia, a drug used to stop a patient's heart during open heart surgery. As his lawyer pointed out, there was no evidence that the drugs he prepared caused any patient harm.
Trial testimony showed that Connolly used NECC president Barry Cadden's sign on and password so regulators would not realize he was working as a technician. In addition Connolly would leave the clean room where he normally worked when state or federal regulators visited NECC's Framingham, Mass. facilities.
Of the 14 NECC related defendants who were indicted, only one has been cleared of charges. Cadden, who was president and part owner of NECC is serving a nine year sentence and supervising pharmacist Glenn Chin is serving an eight year sentence.
Contact: wfrochejr999@gmail.com

NECC Defendant Seeks One Year Probation

By Walter F. Roche Jr.

A defendant and government witness is asking a federal judge to sentence him to just one year of probation for his role at the drug compounding company blamed for a deadly fungal meningitis outbreak.
In an 18-page filing in U.S. District Court in Boston, Mass. lawyers for Scott Connolly asked U.S. District Judge Richard G. Stearns to sentence him to one year of probation or half the sentence proposed by federal prosecutors.
Connolly is scheduled to be sentenced Wednesday for his conviction on 10 counts of mail fraud. He was one of 14 indicted in 2014 following a two year probe of the 2012 fungal meningitis outbreak. The charges against Connolly stem from the fact that he was working as a pharmacy technician at the New England Compounding Center even though he had surrendered his registration.
In the filing Connolly's lawyer, Raymond Sayeg, recounted Connolly's life from his youth in a Boston suburb to his work as a pharmacy technician at area hospitals including a Veterans Administration hospital.
Attached to the filing were letters of recommendation from his new employer, a Catholic priest and his mother and father.
As his lawyer acknowledged Connolly could face up to 33 months in prison, but added, "It is extremely unlikely that Connolly will re-offend or commit additional crimes in the future.
Citing Connolly's contrition and co-operation with federal prosecutors, the brief states that there was no evidence that the drugs Connolly helped produce caused any harm to patients. Nor did his actions enrich him since he was paid by the hour.
In a filing last week federal prosecutors also cited Connolly's cooperation and recommended that he be given a sentence of two years probation.
Contact: wfrochejr999@gmail.com

Prosecutors Seek Probation for Key Witness

By Walter F. Roche Jr.

Citing his critical testimony and substantial cooperation, federal prosecutors are asking a federal judge to sentence a key witness in a drug compounding case to two years probation and no jail time for his guilty plea to 10 counts of mail fraud.
In a nine-page filing today in U.S. District Court in Boston, Mass. the prosecutors also disclosed that the defendant, Scott Connolly, began cooperating with federal investigators a full year before a grand jury indicted 14 people associated with the New England Compounding Center.
The indictment followed a two year probe of the 2012 fungal meningitis caused by NECC steroids loaded with deadly fungi.
Under federal guidelines, Connolly could face a sentence of up to 33 months, but Assistant U.S. Attorneys George Varghese and Amanda Strachan said Connolly's statements and testimony "were critical" in corroborating the evidence against other defendants.
They noted he testified extensively in multiple trials. His brother Joseph, also an NECC employee, was also a government witness. The brother was not charged.
Nonetheless they conceded that Connolly worked as a pharmacy technician at NECC for over two years even though he had surrendered his registration as a result of an incident at a prior employer. He was under investigation by the state Pharmacy Board at the time.
Citing the drug Connolly prepared, cardioplegia, prosecutors said the scheme he engaged in was "highly dangerous." The drug is used to stop a patient's heart during heart surgery and was shipped to medical facilities across the country.
In addition they noted Connolly used NECC president Barry Cadden's user name and password when signing into the company system to avoid detection. He also dropped his technician's duties when regulators appeared at NECC.
However, citing Connolly's "honest and truthful statements, prosecutors said, "In sum Connolly's cooperation has been substantial and directly led to the successful prosecutions in this case."
Contact: wfrochejr999@gmail.com

UPDATED: Mass. Pharmacies Subject of Probe

UPDATED 7/12


By Walter F. Roche Jr.

Two Massachusetts pharmacies partially owned by a state official are the subject of an inquiry over the sale of products made from hemp.
The state official, Andrew Stein, is part owner of the Bird's Hill Compounding Pharmacy in Needham and Johnson's Wellness and Compounding Pharmacy in Waltham, Mass. Both stores advertise hemp products on their web sites. Stein is a member and current president of the Massachusetts Board of Registration in Pharmacy.
Asked about the hemp sales at the two pharmacies, Ann Scales, spokeswoman for the state Health Department, said the agency "has an open complaint on this matter and is looking into it. We will have no further comment until the issue is resolved."
"We are currently undertaking a comprehensive review of the CBD products that we stock to ensure that they are in full compliance with Massachusetts law and regulations," Stein said in an email response.
The disclosure of the inquiry comes shortly after officials of the state Agricultural Resources and Health Departments announced new restrictions on the use of hemp derived cannabis or cannabidiol in products intended for human consumption.
In the June 12 announcement the state officials said the use of CBG in any food product or in any product claiming a medicinal benefit was illegal in the state.
"The following products are NOT approved for sale in the Commonwealth pursuant to M.G.L. c. 128, Section 117(c) and are likewise prohibited for sale under FDA and DPH guidance: Any food product containing CBD; Any product containing CBD derived from hemp that makes therapeutic/medicinal claims," the June 12 notice states.
Among the products advertised on the Bird's Hill web site is a balm "infused with concentrated Gold Formula CBD. Harness your human potential with Plus CBD Oil Extra Strength Balm," the pharmacy web site states."Extra strength CBD Balm absorbs quickly into the skin, providing a soothing and moisturizing experience."
Stein and his partner also have posted items on facebook touting the benefits of CBD products.
Stein was appointed to the state regulatory board in the wake of the 2012 fungal meningitis outbreak, which was caused by a now defunct drug compounding company licensed by the Massachusetts board. The deadly outbreak triggered efforts at reform at both the state and local level.
The composition of the Massachusetts Pharmacy board was changed in 2014 and Stein, a compounding pharmacist, was one of the appointees.
Campaign finance reports show Stein has contributed $550 to the campaign committee of Gov. Charles D. Baker.

Ronzio Sentencing Canceled

By Walter F. Roche Jr.

The sentencing of the key government witness in the criminal probe of a deadly fungal meningitis outbreak has been postponed indefinitely while the government appeals the acquittal of another key figure in the case.
U.S. District Judge Richard G. Stearns, sitting in Boston, Mass., today granted a motion filed by federal prosecutors and the attorney for Robert Ronzio to cancel Ronzio's scheduled sentencing session on Aug. 7.
Ronzio was the national sales director for the New England Compounding Center, the company blamed for the 2012 outbreak. Under an agreement with federal prosecutors he pleaded guilty to conspiring to defraud the U.S. Food and Drug Administration along with officials of NECC.
Stearns acquitted NECC Vice President Gregory Conigliaro and NECC manager Sharon Carter of the same charges although they had both been convicted by unanimous jury votes.
Noting Stearns recent acquittal action, prosecutors and Ronzio's attorney, Peter Horstmann, asked that Ronzio's sentencing be delayed "until after conclusion of any appeal by the government." Stearns quickly granted the motion.
Federal prosecutors, Assistant U.S. Attorneys Amanda Strachan and George Varghese, already have filed initial notice of their intent to appeal Stearns' acquittals.
In approving the request Stearns ordered attorneys for both sides to notify the court when the appeal is decided.
The government appeal marks the second time prosecutors have challenged a decision by Stearns to clear defendants in the case. He granted acquittal motions for two of the 14 originally indicted but the decision was overturned by the First Circuit Court of Appeals.
The 14 were indicted following a two year probe of the 2012 fungal meningitis outbreak caused by fungus laden steroids produced by the now defunct NECC. Nearly 800 victims were sickened and more than 100 of them have died.
Contact: wfrochejr999@gmail.com