Thursday, October 28, 2021

Conigliaro Buys $3 Milllion Shore Home

By Walter F. Roche Jr.

A company formed by one of the convicted defendants in the criminal case stemming from the deadly 2012 fungal meningitis outbreak has purchased a beachfront Cape Cod home for a little over $3 million.
289 East Bay LLC bought the 10-room house overlooking the Nantucket Sound in Osterville, Mass. on Feb. 17 of this year. The company was formed the same day by Douglas Conigliaro, who is listed as the resident agent and manager.
Conigliaro was one of 14 people connected to the New England Compounding Center who were indicted in 2014 following a two year probe of the outbreak. NECC produced and sold the steroids which caused the outbreak.
Conigliaro headed a sister firm, Medical Sales Management, which marketed NECC's products. He and his wife were charged with violating a federal law barring depositors from structuring withdrawals to avoid federal reporting requirements.
Under a plea deal with federal prosecutors the charges were vastly reduced and he was sentenced to one year of probation, a $5,500 fine and forfeiture of the $119,647 he admitted to withdrawing improperly.
"Enjoy creating your own Cape Cod memories-to-come at this stunning seaside retreat," a real estate agent posted in advertising the four bedroom home with four fireplaces that Coniglaro's company bought.
The 4,100 square foot home includes a wet bar and an outdoor hot tub.
The house initially was listed for $3,950,000, but Conigliaro paid $3,035,000, according to records at the Barnstable County Registry of Deeds. No mortgage was recorded.
Douglas Conigliaro, who was a licensed physician, also owns a Beacon Hill condo which he purchased in 2012 for $4,195,000 and a home in Dedham, Mass. purchased for $1,050,000.
He pleaded guilty to violating a federal law setting reporting reporting requirements on currency transactions exceeding $10,000.
Douglas, Gregory's brother, headed a sister firm that marketed NECC's products. In 2019 another company formed by Douglas Conigliaro, 17 Canal Street LLC, purchased a commercial property in Salem for $1.7 million. Another Conigliaro relative has recently advertised the property, the site of a former vape shop shop,for rent.
His brother Gregory and his wife purchased a Cape Cod home in 2012 for $2.35 million. He later sold his interest in the property to his wife for $150,000.
Gregory, who was NECC's vice president, is awaiting sentencing after an appeals court reinstated a guilty verdict on the charge of conspiring to defraud the U.S. Food and Drug Administration.
Contact: wfrochejr999@gmail.com

Monday, October 18, 2021

Prosecutors Seek $$ for Additional Victim

By Walter F. Roche Jr.

Federal prosecutors are seeking approval to increase the restitution order against two former pharmacists because the original request failed to include the amount owed to an unnamed victim.
In a filing today in U.S. District Court in Boston, the U.S. Attorney's office asked U.S. District Court Judge Richard G. Stearns to increase the restitution order by $3,312. That will push the total restitution order against Barry J. Cadden and Glenn A. Chin to $82,025,648.
The two-page request attributes the mistake to a clerical error and notes that attorneys for the two defendants do not oppose the request. Prosecutors have stated that 379 victims will qualify for payments, but full payment of the restitution is regarded as unlikely.
Cadden and Chin were convicted of racketeering, conspiracy and mail fraud for their roles in the 2012 fungal meningitis outbreak which ultimately took the lives of over 100 patients while sickening hundreds of others.
Caddden's federal sentence was recently boosted to 14.5 years. Chin's was increased to 10.5 years. The increases were mandated by the same appeals court that ruled patient victims were entitled to restitution.
The request was filed today by Assistant U.S. Attorney Alexandra Amrheim. The motion states that the amounts sought for the non-patient victims remains the same. Those were identifed as the Elkhart General Hospital, South Bend Clinic and First Recovery Group.
Subsequent to their conviction on the federal charges, Cadden and Chin were charged with 11 counts of second degree murder in Michigan. They are awaiting trial on those charges pending an appeal to the Michigan Supreme Court.
Contact: wfrochejr999@gmai.com

Thursday, October 14, 2021

Appeals Court Corrects NECC Decisions

By Walter F. Roche Jr.

A federal appeals court yesterday made a series of minor corrections in recent decisions on the criminal cases stemming from the 2012 fungal meningitis.
In all four cases the original decisions remained in place and the convictions of Kathy Chin, Michelle Thomas et al remain in place.
In one of the Chin decisions the 1st Circuit of Appeals had misstated the identity of a prosecution witness, whose testimony had been challenged by the defendants because he hadn't been formally qualified as an expert witness.
The witness was Samuel Penta, an official of the Massachusetts Board of Pharmacy, but the opinion said it was Thomas, one of the defendants.
The other corrections were made in the decisions on Sharon Carter and Gregory Conigliaro, who was vice president and part owner of the New England Compounding Center. Carter was an NECC supervisor.
Thomas and Kathy Chin, both then licensed pharmacists worked in the order confirmation section at NECC.
Contact: wfrochejr999@gmail.com

Friday, October 8, 2021

Chin, Thomas Appeals Turned Down

By Walter F. Roche Jr.

A federal appeals court has turned down the apppeals of two licensed pharmacists who approved prescriptions made out to obviously fake names.
In a 33-page ruling a three judge panel of the 1st Circuit Court of Appeals affirmed the conviction of Kathy Chin and Michelle Thomas, both of whom were employed by the now defunct New England Compounding Center.
They were among 14 people indicted following a two year probe of the deadly 2012 fungal meningitis outbreak.
The ruling written by Appeals Court Judge David Barron, however, makes clear that the two were not involved in shipping the steroids that caused the fungal meningitis outbreak which ultimately took the lives of more than 100 patients.
Rather they were charged with violations of the Food Drug and Cosmetic Act when they approved for shipment drugs prescribed for obviously fake named patients like Filet O' Fish. Chin was convicted of four counts and Thomas of two counts of violating the FDCA.
The two had argued that they were not acting as pharmacists but as shipping clerks.
The panel rejected that argument citing testimony by a state official and the defendants former fellow employees.
Chin was sentenced to two years probation while Thomas was sentenced to one year of probation followinng a 2019 trial before U.S. District Judge Richard G. Stearns.
In a related action the U.S. Supreme Court this week turned down an appeal filed by another NECC defendant, Alla Stepanets.
Contact: wfrochejr999@gmail.com

Wednesday, October 6, 2021

Conditions of Release Set for NECC Defendants

By Walter F. Roche Jr.

One of the defendants in the criminal case stemming from the 2012 fungal meningitis outbreak has been released with a $25,000 bond pending his sentencing for conspiring to defraud the U.S. Food and Drug Administration.
U.S. Magistrate Jennifer Boal today left in place the unsecured bond on Gregory Conigliaro during a brief session in U.S. District Court in Boston.
In a related development the U.S. Supreme Court denied the appeal of co-defendant Alla Stepanets. She had been convicted of violating the Food Drug and Cosmetic Act. She was sentenced to one year of probation.
Conigliaro, as a condition of his release, cannot work in the pharmaceutical industry or discuss the case with former employees of the New England Compounding Center. Conigliaro was vice president and part owner of NECC.
Late last month the 1st Circuit Court of Appeals restored the jury's guilty verdicts on Conigliaro and co-defendant Sharon Carter. Both had been overturned by U.S. District Judge Richard G. Stearns. Carter was NECC's operations manager.
Both Carter and Conigliaro attended the session remotely and waived their rights to an in-person appearance.
Both Conigliaro and Carter must surrender their passports later this month.
They were among 14 people connected to NECC who were indicted following a two-year probe of the fungal meningitis outbreak. Thirteen of the 14 have either been found guilty or entered guilty pleas.

Monday, October 4, 2021

Ronzio Sentencing Set for February

By Walter F. Roche Jr.

A Feb. 8, 2022 hearing date has been set for the government's star witness in the criminal case stemming from the deadly 2012 fungal meningitis outbreak.
In an order issued today U.S. District Judge Richard G. Stearns set the 10 a.m. hearing for Robert Ronzio, the former sales chief for the now defunct New England Compounding Center. Ronzio entered a guilty plea to a charge of conspiring to defraud the U.S. Food and Drug Administration.
Ronzio's sentencing was delayed multiple times as prosecutors awaited a ruling by the First Circuit Court of Appeals on a closely related case. That ruling, issued Sept. 27, restored the convictions of two other defendants, Gregory Conigliaro and Sharon Carter, on the same conspiracy charge.
In a 2016 plea deal with federal prosecutors Ronzio agreed to a guilty plea on reduced charges in return for his testimony against other NECC defendants. Ronzio then testified extensively against NECC president Barry Cadden, pharmacist Glenn Chin and several other defendants.
The sentencing will take place in Stearns Boston courtroom.
In related action Conigliaro and Carter are set to appear Wednesday for a bail setting session before U.S. Magistrate Jennifer Boale. That session is set for 2 p.m. in Boston. Conigliaro, a part owner of NECC, was also NECC's vice president. Carter was NECC's director of operations.
The 2012 fungal meningitis outbreak, which ultimately killed over 100 patients, was caused by highly contaminated steroids produced by NECC.
Contact: wfrochejr999@gmail.com