Miami Herald - Sunday, July 22, 2003
Ashley Fantz, afantz@herald.com

Consisting of four bogus-drug wholesalers, the ring made millions selling, in some cases, bottles of chalk and tap water to terminally ill patients, according to investigators.

The concoctions were shipped by UPS to chain pharmacies throughout Florida and other states, including Maryland, Texas and Missouri.

"These arrests show that this type of horrific crime will not be tolerated in Florida," said statewide prosecutor Peter Williams.

Twelve of the 19 were in state custody as of Monday afternoon. Two were expected to surrender to the state today. Others are at large. "We'll get everyone, I'm not worried," said lead investigator Gary Venema of the Florida Department of Law Enforcement's Broward bureau.

Just three weeks before the arrests, a new Florida law went into effect that made selling diluted medications a third-degree felony.

Prior to the Legislature approving the bill and Gov. Jeb Bush signing it July 1, the offense was a misdemeanor.

The new law makes it harder for wholesalers to obtain a license to sell pharmaceuticals, said Oscar Gelpi, assistant statewide prosecutor.

Before July 1, anyone could sell prescription drugs by filling out a three-page application and paying $900 for a dealer's license. The new law requires prospective wholesalers to provide detailed information about their company, including where it will operate and who the owner is. All employees will undergo state background checks and businesses will have to submit audits to the state.

The 18-month investigation, built largely on confidential sources and surveillance, teamed FDLE, the Broward County state attorney's office, the Miami-Dade Police Department, and the Florida Department of Health. The probe began when Miami-Dade police arrested a man in August 2001 on charges of stealing $250,000 worth of Epogen, a drug for kidney dialysis patients, from Jackson Memorial Hospital in Miami.

The man led investigators to at least four wholesale businesses in Broward, Miami-Dade, Palm Beach, Martin and Orange counties. BTC Wholesale, Accucare LLC, G&K Pharma and Omnimed in West Boca Raton obtained brand-name pharmaceuticals such as Procrit, Epogen, Lipitor, Celebrex and Gammagard from manufacturers, diluted, relabeled and then sold them with false documentation to chain stores such as Walgreens and Eckerd, private dealers, or directly to consumers, Williams said.

Hundreds of elderly patients and Medicaid users were victimized, investigators said. In some cases, drugs were bought illegally from Medicaid users and then resold.

There are two indictments. The first is 95 pages and details 32 counts, including mail fraud, racketeering, and dealing in stolen property. It focuses on the alleged ringleader, Michael Carlow, 51, of Weston.

"He is the worst of the worst," said prosecutor Williams, noting that Carlow worked with his wife Candace Carlow, 32, of Weston, and other family members Thomas Atkins Jr., 36 of Kissimmee, and Marilyn Atkins, 58, of Lake Worth. All were charged in the indictment.

Others charged in the first indictment are: Henry Garcia, 37, of Miami; Fabian Diaz, 56, of Miami; Joel De La Osa, 34, of Miami; David Eubanks, 44, of North Miami; Jose Benitez, 50, of Homestead, Dariel Tabares, 26, of Miami; Michael E. Burman, 35, of Boca Raton; Lazaro Vilarchao, 37, of Miramar, Ivan Vilarchao, 29, of Miami Lakes; Joseph Villanueva, 30, of Hialeah; Arturo Godinez, 44, of Hialeah; Tom Martino, 32, of Las Vegas; Julio Cesar Cruz, 40, of Miami, and Gisela Gonzalez, 38, of Hialeah. The indictment states that numerous times members of the group wire-transfered more than $1 million in profits from selling the bogus medications across state lines.

The second indictment accuses Jose Grillo, 46, of Miami, of selling diluted Epogen. His indictment specifies 19 counts, including an organized scheme to defraud and illegal possession and distribution of a prescribed medication.

030722
MH030708

Always watch for outdated information. This article first appeared in 2003. This material is designed to support, not replace, the relationship that exists between you and your doctor.

AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.

Copyright ©1980, 2003. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .