Friday, July 22, 2005

42-Month Sentence for Mail Fraud

U.S. District Judge E. Richard Webber (E.D. Mo.) sentenced Richard Drury to a 42-month term of imprisonment for his conviction on four counts of mail fraud related to creating false invoices for returns of expired drugs.  Drury was chief operating officer for a company called Easy Returns Worldwide Inc. (catchy name), and a press release (here) issued by the U.S. Attorney's Office described the scheme this way:

As part of the services that they provided to client pharmacies, Easy Returns returned recently expired pharmaceuticals to the appropriate manufacturers for a credit to the client pharmacy for a 5-10% fee paid by the pharmacy. The fee was based on the expected credits from the manufacturer. As part of the services provided to client distributors, Easy Returns destroyed recently expired pharmaceuticals and the distributor received a credit from the manufacturer. Between August 2000 and January 2002, Drury, as COO of Easy Returns, devised and participated in a scheme to create fraudulent returns to pharmaceutical manufacturers, causing the manufacturers to credit various pharmacies for returns that did not belong to them. These pharmacies paid a 33% fee to Drury and Easy Returns for the false returns credited to them.

In addition to the jail sentence, Drury was ordered to pay restitution of approximately $725,000.  Another substantial term in a white collar crime case. (ph)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/07/42_month_senten.html

Fraud, Sentencing | Permalink

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