By Walter F. Roche Jr.
Nearly all of the final checks to victims of the 2012 fungal meningitis outbreak have been sent out, according to the attorney in charge of the distributions.
Lynne Riley, the administrator, said today that over 94 per cent of the checks have been sent. Most of those checks were sent to attorneys representing outbreak victims.
Riley said the remaining checks were being held due to unresolved liens against the payments.
"There are a minimal number of claims that have still not cleared liens, and those will be sent when claimants and lienholders resolve those liens," Riley wrote in an email response to questions.
Many outbreak victims have reported that checks have been sent either to them directly or to their attorneys.
Those liens have been filed by the Medicare program, insurance companies and other
parties. Most of the victims will also have to share a portion of the final payment with their lawyers.
While some have reported that the final payments are about equal to the first two, most have reported the final checks were smaller than the previous two.
The total final distribution was an estimated $11.5 million and is going to some 2,000 claimants.
The funds are the final chuck of a multimillion dollar settlement with the owners of the now defunct New England Compounding Center, the company blamed for the deadly outbreak. The company shipped out thousands of vials of a steroid contaminated with a deadly fungus.
Over a hundred patients have died after being injected in the spines and joints with NECC's methylprednisolone acetate. Some more 700 were sickened.
The bankruptcy settlement is seperate from up to $82 million that federal prosecutors are seeking to extract from former NECC owners and affiliates who were convicted in the criminal cases stemming from the outbreak.
A hearing on the proposed restitution is scheduled for July 7 in U.S. District Court in Boston, Mass. Prosecutors say that money would go to 379 victims.
Riley said that those final checks from the bankruptcy settlement will be sent out as soon as she is notified that any outstanding liens have been resolved.
Contact: wfrochejr999@gmail.com
Wednesday, May 12, 2021
Tuesday, May 4, 2021
Ronzio Sentencing Set For Aug. 18
By Walter F. Roche Jr.
A federal judge has set an Aug. 18 date for the sentencing of a key government witness in the criminal probe of the deadly 2012 fungal meningitis outbreak.
Ronzio, who was the sales chief for the New England Compounding Center, testified extensively for prosecutors in the trials of 13 others affiliated with NECC and charged in late 2014 with crimes ranging from racketeering to mail fraud.
Under a plea agreement Ronzio entered a guilty plea to one count of conspiring to defraud the U.S. Food and Drug Administration.
Ronzio's sentencing has been postponed and rescheduled multiple times and prosecutors and Ronzio's attorney had asked for an indefinite postponement until the First Circuit Court of Appeals issues a ruling on a pending government appeal.
Prosecutors are seeking to overturn the acquittals of Gregory Conigliaro and Sharon Carter. Conigliaro was an NECC vice president and part owner. Carter was NECC's director of operations.
U.S. District Judge Richard G. Stearns agreed to cancel a scheduled June sentencing hearing but declined to approve an open ended delay. Instead he set the Aug. 18 date and the session will be held virtually.
Drugs from NECC were contaminated with deadly fungus, killing over 100 patients and sickening over 700.
Contact: wfrochejr999@gmail.com
A federal judge has set an Aug. 18 date for the sentencing of a key government witness in the criminal probe of the deadly 2012 fungal meningitis outbreak.
Ronzio, who was the sales chief for the New England Compounding Center, testified extensively for prosecutors in the trials of 13 others affiliated with NECC and charged in late 2014 with crimes ranging from racketeering to mail fraud.
Under a plea agreement Ronzio entered a guilty plea to one count of conspiring to defraud the U.S. Food and Drug Administration.
Ronzio's sentencing has been postponed and rescheduled multiple times and prosecutors and Ronzio's attorney had asked for an indefinite postponement until the First Circuit Court of Appeals issues a ruling on a pending government appeal.
Prosecutors are seeking to overturn the acquittals of Gregory Conigliaro and Sharon Carter. Conigliaro was an NECC vice president and part owner. Carter was NECC's director of operations.
U.S. District Judge Richard G. Stearns agreed to cancel a scheduled June sentencing hearing but declined to approve an open ended delay. Instead he set the Aug. 18 date and the session will be held virtually.
Drugs from NECC were contaminated with deadly fungus, killing over 100 patients and sickening over 700.
Contact: wfrochejr999@gmail.com
Friday, April 30, 2021
Prosecutors Seek $82 Million, Boosted Sentences
By Walter F. Roche Jr.
Federal prosecutors are asking a judge to nearly double the prison sentences of two former drug company officials and order them to pay $82 million in restitution, nearly all of it going to 379 victims of a deadly fungal meningitis outbreak.
In two lengthy filings in U.S. District Court in Boston, Mass. prosecutors asked for the prison sentences for Barry J.Cadden and Glenn Chin be increased to 17.5 years.
Cadden, who was president and part owner of the defunct New England Compounding Center was originally sentenced to a nine-year term. Chin who was a supervising pharmacist at NECC, was originally given an eight-year sentence.
Citing a ruling by the First Circuit Court of Appeals, Assistant U.S. Attorney Amanda Strachan wrote that the two caused an unprecedented public health crisis that sickened nearly 800 patients and killed over 100 of them.
The filings ask that Cadden be forced to forfeit $11.2 million, up from $7.5 million, while Chin should forfeit $473,584, up from the original order of only $175,000.
In the 30-page filing on Cadden, prosecutors said he showed "an unconscionable disregard for the lives of the patients injected with his drugs."
In the 29-page filing on Chin, Strachan wrote that he was "not only a knowing and willful paticipant in NECC's fraudulent activity, he directed them."
The sentencing memorandum states that, based on the appeals court ruling, Chin's sentence should be increased for three factors including the vulnerability of the victims.
Another enhancement is justified, according to the filing, because Chin's actions put patients at the risk of death or serious bodily injury.
Enhancements cited in the Cadden filing include the fact that the victims who were injected with NECC's contaminated drugs were in fact vulnerable victims.
The filing cites a victim's impact statement submitted by Russell Rusalow, in which he described his father's "tortuous death" after treatment with an NECC drug.
Chin and Cadden were among 14 people connected to NECC who were indicted in 2014 following a two-year federal investigation of the 2012 fungal meningitis outbreak.
The filing notes that the steroids contaminated with deadly fungi were shipped to 76 facilities in 23 states. The July 7 re-sentencing session will be held before U.S. District Judge Richard G. Stearns, the judge who set the initial prison terms for both Chin and Cadden. The appeals court ruling overturned several of Stearns findings, including his decision that people sickened by NECC's drugs did not meet the legal definition of victims. Stearns concluded that the actual purchasers of NECC's contaminated drugs and health insurance companies were the only victims. The prosecution filing recommends that those purchasers and insurers get $1.9 million.
Contact: wfrochejr999@gmail.com
Federal prosecutors are asking a judge to nearly double the prison sentences of two former drug company officials and order them to pay $82 million in restitution, nearly all of it going to 379 victims of a deadly fungal meningitis outbreak.
In two lengthy filings in U.S. District Court in Boston, Mass. prosecutors asked for the prison sentences for Barry J.Cadden and Glenn Chin be increased to 17.5 years.
Cadden, who was president and part owner of the defunct New England Compounding Center was originally sentenced to a nine-year term. Chin who was a supervising pharmacist at NECC, was originally given an eight-year sentence.
Citing a ruling by the First Circuit Court of Appeals, Assistant U.S. Attorney Amanda Strachan wrote that the two caused an unprecedented public health crisis that sickened nearly 800 patients and killed over 100 of them.
The filings ask that Cadden be forced to forfeit $11.2 million, up from $7.5 million, while Chin should forfeit $473,584, up from the original order of only $175,000.
In the 30-page filing on Cadden, prosecutors said he showed "an unconscionable disregard for the lives of the patients injected with his drugs."
In the 29-page filing on Chin, Strachan wrote that he was "not only a knowing and willful paticipant in NECC's fraudulent activity, he directed them."
The sentencing memorandum states that, based on the appeals court ruling, Chin's sentence should be increased for three factors including the vulnerability of the victims.
Another enhancement is justified, according to the filing, because Chin's actions put patients at the risk of death or serious bodily injury.
Enhancements cited in the Cadden filing include the fact that the victims who were injected with NECC's contaminated drugs were in fact vulnerable victims.
The filing cites a victim's impact statement submitted by Russell Rusalow, in which he described his father's "tortuous death" after treatment with an NECC drug.
Chin and Cadden were among 14 people connected to NECC who were indicted in 2014 following a two-year federal investigation of the 2012 fungal meningitis outbreak.
The filing notes that the steroids contaminated with deadly fungi were shipped to 76 facilities in 23 states. The July 7 re-sentencing session will be held before U.S. District Judge Richard G. Stearns, the judge who set the initial prison terms for both Chin and Cadden. The appeals court ruling overturned several of Stearns findings, including his decision that people sickened by NECC's drugs did not meet the legal definition of victims. Stearns concluded that the actual purchasers of NECC's contaminated drugs and health insurance companies were the only victims. The prosecution filing recommends that those purchasers and insurers get $1.9 million.
Contact: wfrochejr999@gmail.com
Cadden, Chin Appeals Denied
By Walter F. Roche Jr.
Appeals to a Michigan court by two former pharmacists facing second degree murder charges have been denied in a one sentence ruling from Presiding Judge Michael F. Gadola.
Lawyers for Glenn Chin and Barry Cadden had petitioned the Michigan Court of Appeals to overturn the decision of a circuit court judge that they should stand trial on the murder charges.
The two were each charged with 11 counts of second degree murder in the deaths of 11 patients who were treated with contaminated drugs produced by the New England Compounding Center.
Cadden was president and part owner of NECC and Chin was a supervising pharmacist in the clean room where the fungus ridden steroids were produced.
In his ruling Judge Gadola wrote that the appeal was being denied "for failure to persuade the court of the need for immediate appellate review."
Under the ruling the case will now return to Livingston County for trial.
Cadden and Chin are still being held at the Livingston County Jail awaiting trial. The two already have been convicted of federal racketeering and conspiracy charges. Cadden was given a nine year prison sentence, while Chin was given an eight year sentence.
Contact: wfrochejr999@gmain.com
Appeals to a Michigan court by two former pharmacists facing second degree murder charges have been denied in a one sentence ruling from Presiding Judge Michael F. Gadola.
Lawyers for Glenn Chin and Barry Cadden had petitioned the Michigan Court of Appeals to overturn the decision of a circuit court judge that they should stand trial on the murder charges.
The two were each charged with 11 counts of second degree murder in the deaths of 11 patients who were treated with contaminated drugs produced by the New England Compounding Center.
Cadden was president and part owner of NECC and Chin was a supervising pharmacist in the clean room where the fungus ridden steroids were produced.
In his ruling Judge Gadola wrote that the appeal was being denied "for failure to persuade the court of the need for immediate appellate review."
Under the ruling the case will now return to Livingston County for trial.
Cadden and Chin are still being held at the Livingston County Jail awaiting trial. The two already have been convicted of federal racketeering and conspiracy charges. Cadden was given a nine year prison sentence, while Chin was given an eight year sentence.
Contact: wfrochejr999@gmain.com
Wednesday, April 28, 2021
2 NECC Defendants Seek Reversal of Convictions
By Walter F. Roche Jr.
Two pharmacists, who were employed by a rogue Massachusetts drug compounding firm are asking an appeals court to overturn their convictions for intentional violations of a federal drug statute.
Kathy Chin and Michelle Thomas will take their case next Wednesday (May 5) before the First Circuit Court of Appeals in Boston, Mass. The two were convicted of violating the Food Drug and Cosmetic Act with intent to defraud or deceive.
Chin, who was convicted of committing four violations of the law, charged in her appeal that she was not acting as a pharmacist when she approved the shipment of drugs precribed for fake named patients.
Through her attorney, Joan Griffin, Chin argued that she was nothing more than a shipping clerk at the New England Compounding Center, checking to see that the right drugs were being sent to the right address.
"The government has no evidence that Kathy Chin even saw a fake name," the appeal states.
Chin and Thomas were among 14 people connected to NECC who were indicted in 2014 following a two year probe of the deadly 2012 fungal meningitis outbreak caused by contaminated drugs produced by the now defunct firm.
Chin and Thomas were not involved in handling the steroids that caused the outbreak but were charged with sending out drugs prescribed for patients with names like Filet O. Fish and L.L. Bean.
Both Chin and Thomas charged that trial testimony by an official from the Masachusetts Board of Pharmacy should have been excluded. Samuel Penta testified that under Massachusetts law and regulations the two were required to certify that the drugs were being issued with legitimate prescriptions.
Griffin noted that at one point U.S. District Judge Richard G. Stearns dismissed the charges against both Chin and Thomas. His decision was reversed and the charges were reinstated by the same court now hearing their appeals.
Michael Bourbeau, Thomas attorney, noted that Thomas herself raised questions to her superiors about a name that was obviously fake. As a result, the appeal states, the name was corrected.
The appeal states that none of the evidence showed Thomas had any criminal intent.
"Neither Chin or Thomas were parties to any of the emails or discussions" in which other NECC employees discussed a scheme to ship drugs for fake named patients.
Following their convictions Chin and Thomas were sentenced to probation with no jail time.
Contact: wfrochejr999@gmail.com
Two pharmacists, who were employed by a rogue Massachusetts drug compounding firm are asking an appeals court to overturn their convictions for intentional violations of a federal drug statute.
Kathy Chin and Michelle Thomas will take their case next Wednesday (May 5) before the First Circuit Court of Appeals in Boston, Mass. The two were convicted of violating the Food Drug and Cosmetic Act with intent to defraud or deceive.
Chin, who was convicted of committing four violations of the law, charged in her appeal that she was not acting as a pharmacist when she approved the shipment of drugs precribed for fake named patients.
Through her attorney, Joan Griffin, Chin argued that she was nothing more than a shipping clerk at the New England Compounding Center, checking to see that the right drugs were being sent to the right address.
"The government has no evidence that Kathy Chin even saw a fake name," the appeal states.
Chin and Thomas were among 14 people connected to NECC who were indicted in 2014 following a two year probe of the deadly 2012 fungal meningitis outbreak caused by contaminated drugs produced by the now defunct firm.
Chin and Thomas were not involved in handling the steroids that caused the outbreak but were charged with sending out drugs prescribed for patients with names like Filet O. Fish and L.L. Bean.
Both Chin and Thomas charged that trial testimony by an official from the Masachusetts Board of Pharmacy should have been excluded. Samuel Penta testified that under Massachusetts law and regulations the two were required to certify that the drugs were being issued with legitimate prescriptions.
Griffin noted that at one point U.S. District Judge Richard G. Stearns dismissed the charges against both Chin and Thomas. His decision was reversed and the charges were reinstated by the same court now hearing their appeals.
Michael Bourbeau, Thomas attorney, noted that Thomas herself raised questions to her superiors about a name that was obviously fake. As a result, the appeal states, the name was corrected.
The appeal states that none of the evidence showed Thomas had any criminal intent.
"Neither Chin or Thomas were parties to any of the emails or discussions" in which other NECC employees discussed a scheme to ship drugs for fake named patients.
Following their convictions Chin and Thomas were sentenced to probation with no jail time.
Contact: wfrochejr999@gmail.com
Friday, April 23, 2021
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."
Contact: wfrochejr999@gmail.com
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."
Contact: wfrochejr999@gmail.com
Thursday, April 15, 2021
Final Victims' Checks Going Out
By Walter F. Roche Jr.
The third and final payments to victims of the 2012 fungal meningitis outbreak are now being distributed, according to the attorney managing the payment fund.
Lynne Riley, the fund administrator, said Thursday some the payments have already gone out.
The final payments come from tax refunds that went to the owners of the New England Compounding Center. The owners of the now defunct Massachusetts firm agreed to turn over a portion of those refunds as part of the settlement of NECC's bankruptcy.
NECC was the source of highly contaminated steroids that caused the 2012 outbreak.
NECC's former president is now serving a nine year prison sentence following his conviction on racketering, conspiracy and mail fraud charges. Several other NECC employees were convicted of related charges.
The estimated $11.5 million in final payments are in addition to about $100 million distributed previously.
The $11.5 million had been held in escrow in the event the IRS decided to dispute the refunds. The deadline to file an appeal has now passed.
Some 2,000 victims of the outbreak are sharing in the final allotment. The payments are going out some two months earlier than originally predicted.
Contact: wfrochejr999@gmail.com
The third and final payments to victims of the 2012 fungal meningitis outbreak are now being distributed, according to the attorney managing the payment fund.
Lynne Riley, the fund administrator, said Thursday some the payments have already gone out.
The final payments come from tax refunds that went to the owners of the New England Compounding Center. The owners of the now defunct Massachusetts firm agreed to turn over a portion of those refunds as part of the settlement of NECC's bankruptcy.
NECC was the source of highly contaminated steroids that caused the 2012 outbreak.
NECC's former president is now serving a nine year prison sentence following his conviction on racketering, conspiracy and mail fraud charges. Several other NECC employees were convicted of related charges.
The estimated $11.5 million in final payments are in addition to about $100 million distributed previously.
The $11.5 million had been held in escrow in the event the IRS decided to dispute the refunds. The deadline to file an appeal has now passed.
Some 2,000 victims of the outbreak are sharing in the final allotment. The payments are going out some two months earlier than originally predicted.
Contact: wfrochejr999@gmail.com
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