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Online Drug Ring Bust in Virginia Charges 10 People in 3 States

Federal officials in Alexandria yesterday said they broke up a major ring that sold weight-loss drugs and other controlled substances over the Internet and announced charges against 10 people in three states.

The case, culminating a complex investigation that lasted more than two years, represents one of the largest multi-state efforts in a recent federal crackdown on Internet sales of prescription drugs. Those charged yesterday are facing $125 million in forfeitures gained from the scheme, officials said.

With little notice or meaningful oversight, the Internet has become a pipeline for controlled substances and other potentially dangerous drugs. Tens of millions of pills now flow each year from rogue online pharmacies to customers nationwide.

With the click of a computer mouse, they can order from a vast array of painkillers, antidepressants, stimulants and weight-loss drugs with few controls and little medical monitoring.

The 108-count indictment, returned by a federal grand jury in Alexandria and unsealed yesterday, charges the 10 people and three companies with using Web sites to lure customers to the scheme.

The owner of businesses that operated the Web sites, Vineet K. Chhabra, 32, of Golden Beach, Fla., faces the most serious charges. Federal officials said Chhabra, who has been under investigation for several years, played a key organizing role. Others charged include two doctors and two pharmacists from Salem and Midlothian, Va. The other defendants live in Ohio and Florida.

When customers ordered drugs online, court papers say, they would choose the type, quantity and dosage. But no one checked the information, and they obtained the drugs without ever seeing a doctor in person -- both of which are required by federal law.

The indictment also charges that the defendants distributed the drugs without performing mental or physical exams, getting patient histories or monitoring patient responses. Some of the controlled substances, court papers say, were weight-loss drugs commonly known as Bontril, Lonamin and Meridia.

"This case is about a dangerous new spin on an old problem," said Paul J. McNulty, the U.S. attorney in Alexandria. "Drug trafficking in cyberspace is just as harmful to public safety as drug trafficking on street corners."

Nearly 6 million doses of the controlled substances were distributed through the Web sites, the indictment alleges. States to which the drugs flowed included Virginia, Maryland, Pennsylvania, New York, Texas and Missouri, as well as to the District of Columbia.

As the problem of rogue Internet pharmacies has grown, it has become clear that they have taken advantage of lax oversight and gaps in state and federal regulations. Licensing requirements for online drugstores vary from state to state, with some requiring detailed background checks and others almost no checks.

Nor is there any federal certification of Internet pharmacies. An online drugstore can set up shop in one state, close down as investigators move in, and open the next day in another state. Some of the Web sites that appear to be in the United States are actually headquartered in Costa Rica, Africa, India and Thailand, according to corporate records.

Still, federal officials have had some success recently. In March 2002, U.S. attorneys in San Antonio indicted those connected with a Texas Web site on charges of distributing more than 7 million doses of controlled substances. The owner and three doctors who wrote prescriptions for the site have pleaded guilty and await federal sentencing. More recently, the owner of another Texas Web site was convicted of illegally dispensing controlled substances. Three doctors have pleaded guilty in that case and await sentencing.

The multi-state investigation that led to yesterday's charges was overseen by the Justice Department's Office of Consumer Litigation. Last summer, officials decided they were ready to seek criminal prosecution and approached McNulty's office, which is also overseeing another major drug probe, of the abuse of OxyContin and other prescription drugs.

Prosecutors in Alexandria have been poring over various charges and evidence ever since. "We knew this was somewhat novel and wanted to make sure the case was as strong as possible," one law enforcement official said.

In addition to the $125 million, the defendants also face forfeitures of such luxury items as Mercedes-Benzes and BMWs; jewelry that included a "four-prong diamond tennis bracelet" and "seven Platinum toe rings"; and a baby grand piano.


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