Laurence F. Doud III, the former chief executive officer of Rochester Drug Co-Operative, Inc. (RDC), one of the 10 largest pharmaceutical distributors in the United States, ignored what U.S. prosecutors have called “serious red flags” surrounding the sale of opioid drugs.
Laurence F. Doud III, the former chief executive officer of Rochester Drug Co-Operative, Inc. (RDC), one of the 10 largest pharmaceutical distributors in the United States, ignored what U.S. prosecutors have called “serious red flags” surrounding the sale of opioid drugs.
Doud, along with William Pietruszewski, RDC’s former chief compliance officer, are facing criminal charges of unlawfully distributing oxycodone and fentanyl, and conspiring to defraud the Drug Enforcement Agency. The two former executives were charged in 2019 as part of the government’s efforts to crack down on the opioid epidemic.
Prosecutors in Doud’s trial said the former CEO directed the sale of opioids to pharmacies despite warnings that the drugs were being illegally diverted to street dealers and addicts, Bloomberg reported. Doud’s criminal trial began this week in New York City.
According to the government charges brought against Doud three years ago, from 2012 through March 2017, RDC violated federal narcotics laws by distributing dangerous, highly addictive opioids to pharmacy customers that it knew were being sold and used illicitly. The government has leveled the charge that the distribution of the opioid drugs was done at the direction of senior management, including Doud and Pietruszewski. RDC supplied “large quantities of oxycodone, fentanyl and other dangerous opioids” to pharmacy customers that the company’s own compliance personnel determined were “dispensing those drugs to individuals who had no legitimate medical need for them,” the government said. Those charges were outlined to jurors this week.
“He and the people who worked for him shipped the opioids knowing that some of those pharmacies were selling them illegally, and turning a blind eye to clear signs that others were breaking the law,” Assistant U.S. Attorney Thomas Burnett told jurors Tuesday in his opening statement, according to Bloomberg. “Then he had his employees lie to the government about what they were doing.”
Doud is not the first drug executive to face criminal charges for playing a role in the opioid epidemic. Two years ago John Kapoor, the founder and former CEO of Insys Therapeutics was sentenced to more than five years in federal prison for orchestrating kickback schemes to doctors in order to encourage more opioid prescriptions. While Kapoor and other Insys executives have been sentenced, Bloomberg noted that Doud is the first executive to be charged with diverting the painkillers.
According to the government charges, the opioids were distributed to pharmacies despite warning flags that signaled the enormous quantities being sold were amounts consistently higher than accepted medical standards. At Doud’s direction, RDC frequently brought on pharmacy customers that had been terminated by other distributors, the government said.
Doud’s attorneys are disputing the government claims. During his opening statement, Doud attorney Derrelle Janey told jurors he was being falsely accused. While he said RDC’s compliance program may have had its faults, Janey told jurors it was no “sham or front” to sell drugs illegally, Bloomberg said.
RDC’s Pietruszewski, pleaded guilty in April 2019 and has agreed to cooperate with prosecutors.
