Upcoming Hearing Key To Outbreak Victims

By Walter F. Roche Jr.

An upcoming hearing on the resentencing of a one time drug company owner, will be of great interest to the hundreds of victims of a fungal meningitis outbreak caused by contaminated drugs shipped by that pharmacist's company.
The July 7 hearing will be key in determining whether those outbreak victims will get further payments and, if so, how much they will get.
At issue are forfeiture and restitution orders stemming from the convictions of Barry J. Cadden and others associated with the now defunct New England Compounding Center.
Federal prosecutors say Cadden and other NECC figures should forfeit a total of $7.5 million. They are also seeking $82 million in restitution.
Those figures were drastically reduced by U.S. District Judge Richard G. Stearns who also concluded that the hundreds of outbreak victims did not meet the applicable definition of victims under federal law and thus were entitled to no restitution.
The First Circuit Court of Appeals rejected Stearns reasoning on both counts and remanded the case to Stearns who had concluded "Reality casts a cold light" on the $82 milllion figure sought by prosecutors.
Stearns deferred a final decision on restitution pending the results of the cases against the other NECC defendants. With the First Circuit decision issued last year, the restitution issue is back before Stearns.
The circuit court also disputed Stearns conclusion that the outbreak victims did not meet the requirements of the federal law. They also disputed his conclusion that the outbreak victims were not vulnerable victims under federal law.
As a result Stearns will also have to reconsider the $1.4 million restitution order he had issued and reconsider the $82 million proposed by the U.S. Attorney.
Any awards to victims from forfeiture or restitution funds would be in addition to payments stemming from a victims fund established under NECC's bankruptcy. Final payments from that fund are ongoing.
At the same July hearing Stearns will be asked to consider increases in the sentences imposed on Cadden and co-defendant, Glenn Chin. The appeals panel said Stearns wrongly rejected arguments from prosecutors that both defendants should have their sentences enhanced due to so-called aggravating circumstances. Cadden was given a nine year sentence following his conviction on racketeering, conspiracy and mail fraud charges.Chin got an eight year sentence. The circuit court found Stearns reasoning in rejecting enhancements "legally erroneous."
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