Prosecutors Seek $73.7 Million for Outbreak Victims

By Walter F. Roche Jr.

BOSTON- Federal prosecutors are asking a judge to approve a $73.7 million restitution order against the former president of a drug compounding firm, who already is serving a nine year prison sentence following his conviction on racketeering and fraud charges.
The motion seeks to have the $73.7 million distributed to 349 of the victims of the 2012 fungal meningitis outbreak who filed claims with the U.S. Attorney. It includes $1.9 million requested by insurance companies and medical facilities as reimbursement for drugs purchased from NECC.
The restitution would be imposed on Barry J. Cadden, who was convicted in March following a 10-week jury trial.
Cadden was president and part owner of the New England Compounding Center, the firm blamed for the outbreak that took the lives of 76 patients.
Citing provisions of the Mandatory Victims Compensation Act, the six-page motion states, "Restitution to the victims is mandatory in this case."
The filing comes as the criminal case of Cadden's codefendant, Glenn Chin is proceeding with prosecution witnesses testifying about NECC's operations. Two former employees testified Wednesday.
Accompanying the restitution motion is a 15-page report prepared by a government expert who gathered the names of victims and the necessary data to prove their losses.
According to the motion, there were hundreds of additional victims of the outbreak, but the order would only benefit those who filed claims and provided documentation of their losses.
Expenses that qualify include medical expenses, costs for physical and occupational therapy, rehabilitation, lost income and funeral costs.
According to the report by Thomas Barocci of TAB Consultants, claims were filed by the survivors of 62 victims who died, 210 who became disabled, 37 partially disabled, 23 who recovered and 17 with no known injuries.
While valid claims were filed for restitution, the filing states that overall 780 persons were considered victims of the outbreak caused by NECC steroids contaminated with deadly fungi.
At Chin's trial Wednesday, former NECC technician Cory Fletcher, testified about expired and outdated ingredients NECC used to compound drugs, including an anti-cancer drug prescribed for children.
Under questioning by Assistant U.S. Attorney Amanda Strachan, Fletcher said that when tests showed presence of bacteria or mold in so-called clean rooms, nothing was done.
Under cross examination by Chin's attorney Stephen Weymouth, Fletcher described how the NECC cleanroom was moved to a new location in the company's Framingham, Mass offices.
Fletcher acknowledged that he became friends with Chin and "I enjoyed him as a supervisor."
Weymouth, however, questioned whether Chin really was his supervisor and cited instances when Fletcher had direct contact with Cadden.
Steven Sanda, who helped process orders for NECC customers, testified about patient lists that included obviously fake names, like Mickey Mouse and Donald Duck. He said he would call sales staffers to complain about the practice.
Contact: wfrochejr999@gmail.com