Feds probe FedEx, UPS over online drug shipments
SAN FRANCISCO (AP) — FedEx and UPS have disclosed they are targets of a federal criminal investigation related to their dealings with online pharmacies, which are at the center of an international crackdown on prescription drug abuse.
The shipping companies made the disclosures in regulatory filings over the last several weeks. FedEx spokesman Patrick Fitzgerald confirmed the probe in a prepared statement and a phone interview Thursday.
The investigation of the country's two largest shippers stems from a blitz against online pharmacies that was launched in 2005. Since then, dozens of arrests have been made, thousands of websites shuttered and tens of millions of dollars and pills seized worldwide as investigators continue to broaden the probe beyond the operators.
Last year, Google Inc. agreed to pay $500 million to settle allegations by the Justice Department that it profited from ads for illegal online pharmacies.
A federal jury on Thursday convicted three men of operating illegal pharmacies that used FedEx Corp. and UPS Inc. to deliver drugs without proper prescriptions. Seven others have been convicted in San Francisco this year.
Fitzgerald said he didn't know if the FedEx investigation was connected to the San Francisco cases, but U.S. Department of Justice investigators based in San Francisco are looking into issues "related to the transportation of packages for online pharmacies." He called the probe "absurd" and said the Memphis, Tenn., company denied any wrongdoing
A spokesman with the U.S. attorney's office in San Francisco declined to comment. A spokesman for Atlanta-based UPS couldn't be reached after business hours Thursday.
UPS disclosed the investigation Nov. 1 in a regulatory filing reporting its quarterly earnings.
"We have received requests for information from the DOJ in the Northern District of California in connection with a criminal investigation relating to the transportation of packages for online pharmacies that may have shipped pharmaceuticals in violation of federal law," the company stated. UPS said it was cooperating with the investigation and is "exploring the possibility of resolving this matter."
FedEx was more defiant. Fitzgerald said the company has no plans to plea bargain with federal officials.
"Settlement is not an option when there is no illegal activity," Fitzgerald said.
Both companies said they were served with grand jury subpoenas between 2007 and 2009. Fitzgerald declined to discuss why FedEx was now disclosing the investigation, but he confirmed that the company is under investigation for allegedly aiding and abetting online pharmacies that illegally ship prescription drugs.
Fitzgerald said the Drug Enforcement Agency has refused FedEx's request for a list of online pharmacies under investigation. Without such a list, Fitzgerald said it's impossible to know which companies are operating illegally.
"We have no interest in violating the privacy of our customers by opening and inspecting their packages in an attempt to determine the legality of the contents," Fitzgerald said.
The shipping companies made the disclosures in regulatory filings over the last several weeks. FedEx spokesman Patrick Fitzgerald confirmed the probe in a prepared statement and a phone interview Thursday.
The investigation of the country's two largest shippers stems from a blitz against online pharmacies that was launched in 2005. Since then, dozens of arrests have been made, thousands of websites shuttered and tens of millions of dollars and pills seized worldwide as investigators continue to broaden the probe beyond the operators.
Last year, Google Inc. agreed to pay $500 million to settle allegations by the Justice Department that it profited from ads for illegal online pharmacies.
A federal jury on Thursday convicted three men of operating illegal pharmacies that used FedEx Corp. and UPS Inc. to deliver drugs without proper prescriptions. Seven others have been convicted in San Francisco this year.
Fitzgerald said he didn't know if the FedEx investigation was connected to the San Francisco cases, but U.S. Department of Justice investigators based in San Francisco are looking into issues "related to the transportation of packages for online pharmacies." He called the probe "absurd" and said the Memphis, Tenn., company denied any wrongdoing
A spokesman with the U.S. attorney's office in San Francisco declined to comment. A spokesman for Atlanta-based UPS couldn't be reached after business hours Thursday.
UPS disclosed the investigation Nov. 1 in a regulatory filing reporting its quarterly earnings.
"We have received requests for information from the DOJ in the Northern District of California in connection with a criminal investigation relating to the transportation of packages for online pharmacies that may have shipped pharmaceuticals in violation of federal law," the company stated. UPS said it was cooperating with the investigation and is "exploring the possibility of resolving this matter."
FedEx was more defiant. Fitzgerald said the company has no plans to plea bargain with federal officials.
"Settlement is not an option when there is no illegal activity," Fitzgerald said.
Both companies said they were served with grand jury subpoenas between 2007 and 2009. Fitzgerald declined to discuss why FedEx was now disclosing the investigation, but he confirmed that the company is under investigation for allegedly aiding and abetting online pharmacies that illegally ship prescription drugs.
Fitzgerald said the Drug Enforcement Agency has refused FedEx's request for a list of online pharmacies under investigation. Without such a list, Fitzgerald said it's impossible to know which companies are operating illegally.
"We have no interest in violating the privacy of our customers by opening and inspecting their packages in an attempt to determine the legality of the contents," Fitzgerald said.
When you absolutely, positively have to get high overnight!
Brought to you by Big Pharmaceuticals, who also brought you prescription drug price fixing, market monopolization, forced healthcare protection money, increased taxes, the War on Marijuana and criminal charges for anyone who threatens the profit of the biggest Drug Cartel of all. All supported and backed by the US Government, the enforcers of the Cartel.
UPS and FedEx just deliver packages. If they are going after then then they need to go after the USPS who also has accepted shipments from illegal pharmacies.
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The feds are just looking for revenue and trying to make the USPS look better. I can only hope the USPS goes bankrupt and that drain to the US budget is eliminated.
sounds like propaganda to save the post office
This action is at the behest of the pharmaceutical industry to protect profits. It harms consumers that seek affordable medications or self-medicate because they cannot afford insurance and suppresses the free market which, as everyone knows already, is the grand myth of the American model of Capitalism.
 @IcarusÂ
Some are outright scams and sell sugar pills while others will sell bootleg meds without any QA of the product.
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While I agree with you in principle there needs to be some control when not getting the right dosage can kill people.
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I can think of some of the most prescribed drugs that could easily kill people if they aren't within a few percentage points of the prescribed dose.
Damn, Can't people like my mom just get her prescriptions sent to her with out this freaking mess?