Wednesday, August 3, 2005

Plea in Fen-Phen Fraud Case

Fen-Phen, a weight loss drug, was removed from the market in 1997. (See here).  As one might suspect, it was followed by lawsuits to compensate those injured, and a class action settlement. (see here). 

A recent sentencing in Mississippi concerns fraud related to this settlement. A DOJ Press Release states here that, "[a] Mississippi woman has been sentenced to 31 months in prison for her role in falsifying prescription documents on behalf of others in order to obtain funds from a settlement fund established for injuries caused by the so-called 'fen-phen' drugs."  The press release states that the defendant "participated in the scheme to file false prescription documents on behalf of others in order to obtain funds from a $400 million settlement fund established following a suit against American Home Products, the maker of the diet drugs Redux and Pondomin, for injuries caused by fen-phen. Johnson was also ordered to pay $750,000 in restitution."

(esp)

http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/08/plea_in_fenphen.html

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