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.