FedEx Investigation: Company Indicted for Prescription Drug Trafficking
FedEx is being indicted by a grand jury for charges of transporting prescription drugs by illegal online pharmacies, according to the Justice Department.
Prosecutors say that FedEx was warned for almost a decade by federal agencies like the Drug Enforcement Agency that their shipping services were being used to illegally ship prescription drugs, like oxycodone and hydrocodone. Prosecutors say that FedEx ignored those warnings.
The indictment also says that FedEx allegedly "departed from its usual business practices" to allow the shipping of the drugs to continue. The indictment says that FedEx knew of two major illegal pharmacies -- the Chhabra-Smoley organization and Superior Drugs. Top managers at FedEx allegedly allowed these practices, according to the indictment.
"The advent of Internet pharmacies allowed the cheap and easy distribution of massive amounts of illegal prescription drugs to every corner of the United States, while allowing perpetrators to conceal their identities through the anonymity the Internet provides," U.S. Attorney Melinda Haag said in a statement Thursday. "This indictment highlights the importance of holding corporations that knowingly enable illegal activity responsible for their role in aiding criminal behavior."
The indictment says that FedEx took steps to protect themselves from these Internet pharmacies if they were forced to shut down by setting up special credit policies for them.
"FedEx knew that it was delivering drugs to dealers and addicts," the Justice Department said in a press release.
FedEx plans to fight the charges, according to the Memphis Business Journal.
"We have repeatedly requested that the government provide us a list of online pharmacies engaging in illegal activity," Patrick Fitzgerald, senior vice president for marketing and communications, said. "Whenever DEA provides us a list of pharmacies engaging in illegal activity, we will turn off shipping for those companies immediately. So far the government has declined to provide such a list."
Fitzgerald added that it's not realistic for FedEx to know what is in the 10 million packages it ships each day.
Some FedEx couriers in the U.S. have said they worry about their safety when delivering these packages of pills. Often the addresses are parking lots, schools and vacant homes, and many times there are carloads of people waiting for the shipment, the indictment added.
"FedEx trucks had been stopped on the road by Internet pharmacy customers demanding packages of pills," it said.
These Internet pharmacies first hit the web in 1998. They offer discounted pain medicines and ask very little information before allowing the drugs to be shipped.
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