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$18 Million Seized from Compounding Pharmacy Blamed for Meningitis Outbreak
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A co-founder of the Massachusetts compounding pharmacy embroiled in controversy after its products allegedly led to a deadly meningitis outbreak is taking a financial hit, as authorities have seized more than $18 million from 13 different financial institutions.
A co-founder of the Massachusetts compounding pharmacy embroiled in controversy after its products allegedly led to a deadly meningitis outbreak is taking a financial hit, as authorities have seized more than $18 million from 13 different financial institutions.
The Associated Press (AP) reported that approximately $16.8 million was frozen in accounts related to co-founder Douglas Conigliaro and his wife, Carla, who was a majority shareholder of the New England Compounding Center.
US Attorney Carmen Ortiz claimed that the Conigliaros transferred millions of dollars while the company was surrendering its license, and shortly before it filed for bankruptcy. Despite the bankruptcy court’s orders to stop all transfers of assets, the Conigliaros continued to transfer millions, the AP reported.
The compounding pharmacy’s other co-founder, Barry Cadden, who is accused of second-degree murder, had $1.5 million seized by authorities, as well.
In addition to the 2 co-founders, 12 other former employees have been arrested for allegedly distributing tainted drugs that caused a fungal meningitis outbreak in 2012 and killed 64 individuals. The employees’ charges include mail fraud and the introduction of adulterated and misbranded drugs into interstate commerce.
